Concepts of Post Physical and Post Financial negative inventory

Hi Everyone,

Today i am going to discuss about the concepts of Physical and Financial negative inventory of the Inventory Model group.

Every invenotry model group in the setup tab have setup for Negative Inventory-

1. Physical Negative Inventory(Check Box)

2. Financial Negative Inventory(Check Box)

Post Physical Negative Inventory Check Box-

If this check box is checked then in Sales Order, the system will allow to Post SO Packing Slip even if the item’s inventory level (Available Physical) is below as required in the SO line.

If this check box is cleared, then in Sales Order, the system will not allow to Post SO packing slip if the item’s inventory level (Available Physical) is below as required in the SO line.

Post Financial Negative Inventory Check Box-

If the Post Physical Negative Inventory Check Box is checked and the Post Financial Negative Inventory Check Box is cleared, then in Sales Order the system will allow the user to Post SO packing slip but will not allow doing SO Invoice if the item’s inventory level (Available Physical) is below as required in the SO line.

The system throw the below error:

  Explanation by the help of example:

1. Create 2 Inventory Model group and do the setup as below :

·         With only Financial Negative Inventory check box checked.

·         With Only Physical Negative Inventory check box checked.

2. Create 2 new items:

Assign these Inventory Model groups to these newly created items.

One item with IMG having only Financial Negative Inventory check box checked.

One item with IMG having Only Physical Negative Inventory check box checked.

3. Create 2 Sales orders.

1^st Scenario:

Create a SO with the SO line item having only Financial Negative Inventory check box checked in the IMG.

So, if the SO line item has no available qty then the system will not allow doing picking list registration and will throw the below error.

  

 

2^nd Scenario:

Create a SO with the SO line item with Only Physical Negative Inventory check box checked in IMG.

So, even if the SO line item has no available qty then also it will allow doing packing slip but will stop from invoicing the SO.