To handle negative inventory in inventory tracking

To describe the procedure to specify the country of origin for negative inventory and to handle receipts to replenish the negative inventory, this example is used:

Sales order SLS0020 is present for 100 pieces of item A. The sales order is released to Warehousing.

Outbound order line SLS0010 has been created for the sales order.

The available inventory of item A is 60 with country of origin Norway. This is registered in inventory tracking unit ITU0045.

Purchase order PUR0030 is present for 150 items A with country of origin Canada. The items have arrived at the receipt location, but the receipt has not yet been confirmed.

The receipt procedure includes the generate and put away inbound advice activities. Therefore, the 150 items A with country of origin Canada are not yet registered in inventory.

To issue and ship for 100 pieces of item A, the available inventory will become negative with a quantity of -40. Therefore, to ship 100 items A, 40 items A must be collected from the receipt location.

This topic provides step-by-step instructions for issuing and receiving negative inventory in inventory tracking. See Negative inventory in inventory tracking for an overview of this functionality.

To complete the issuing and shipment of outbound order line SLS0010, complete these steps:

  1. Generate outbound advice for outbound order line SLS0010.

    Consequently, 60 items A are advised. This is because LN cannot advise more than the total available quantity in inventory.

    In the Outbound Line Status Overview (whinh2129m00) session, the Generate Outbound Advice activity is displayed as Partially finished because not all items could be advised.

    The 60 advised items A, with country of origin Norway, are all linked to inventory tracking unit ITU0045. That is why the Inventory Tracking Selection Complete check box is selected in the Outbound Advice (whinh4525m000) session.

  2. In the Outbound Advice (whinh4525m000) session, in the Advised Quantity field, manually increase the advised quantity to 100 and save the record.

  3. Click OK in the message window saying that negative inventory can result.

    Consequently, the available inventory is reduced to – 40 and the Inventory Tracking Selection Required check box is selected in the Outbound Advice (whinh4525m000) session.

    This is because – 40 items a are not linked to an inventory tracking unit and the country of origin is not known.

    40 Items to be received must be collected from the receipt location and after checking the items, the country of origin of these items turns out to be Canada.

    To specify country of origin Canada for these items, you must create a negative inventory tracking unit.

  4. In the Outbound Advice (whinh4525m000) session, select the outbound advice and on the References menu, select Country of Origin.

  5. Click Selection on the toolbar of the Outbound Advice (tcitu3100m300) session.

  6. In the Inventory Tracking Unit Selection (tcitu3600m100) session that opens, the lines section shows inventory tracking unit ITU0045 with 60 items A and country of origin Norway.

  7. On the Actions menu, select New Tracking Unit.

  8. In the Inventory Tracking Unit (tcitu1600m000) session, the item, the enterprise unit, the warehouse, and country of origin Norway are set as default values. These values are taken from the outbound advice. Also, the Negative check box is selected.

  9. Change the default country of origin to Canada.

  10. Save and close the record.

  11. Back in the Inventory Tracking Unit Selection (tcitu3600m100) session, the new negative inventory tracking unit ITU0052 is displayed in the lines section below inventory tracking unit ITU0045.

    In the Allocated Quantity field, specify 60 for inventory tracking unit ITU0045 and 40 for inventory tracking unit ITU0052.

  12. On the toolbar of the lines section, click Allocate.

  13. Save and close the session.

  14. Click OK in the Outbound Advice (tcitu3100m300) session to close this session.

    15. Complete the outbound and shipment procedure for outbound order line SLS0010.

To replenish negative inventory

The negative inventory of – 40 items A is replenished when the receipt of purchase order PUR0030 is confirmed.

When the receipt of PUR0030 is confirmed, LN takes these actions:

  • Set Warehouse Receipt activity to Finished: Yes, and set received quantity to 150.

  • Set Generate Inbound Advice to Finished: Partially, and set advised quantity to 40.

    Set Put Away Inbound Advice activity to Finished: Partially, and set put away quantity to 40.

  • Create inventory tracking receipt ITR00155 for 150 items A, country of origin Canada.

  • Create inventory tracking unit ITU0053 for 150 items A, country of origin Canada and link this to inventory tracking receipt ITR00155.

  • Create inventory tracking receipt ITR00156 for 40 items A, country of origin Canada and link this to negative inventory tracking unit ITU0052.

  • Add 40 items A to negative inventory tracking unit ITU0052. Consequently, the negative quantity of this inventory tracking unit of – 40 is increased to 0 (zero).

Inbound advice is still to be generated and put away for 110 items A, country of origin Canada.