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<ManualTopic ID="/baanerp/wh/onlinemanual/000317" xml:lang="en">
   <Header>
      <Title>Negative inventory</Title>
      <Keyword type="header" order="d1e2603787">
         <Level1>negative inventory</Level1>
      </Keyword>
      <Keyword type="header" order="d1e2603790">
         <Level1>outbound advice</Level1>
      </Keyword>
   </Header>
   <AimSection>
      <Paragraph>Allowing negative inventory enables you to deliver goods for an
		order if the goods are physically available but have not yet been registered in LN. This occurs if the
		physical flow of goods is faster than the electronical flow.</Paragraph>
   </AimSection>
   <GeneralSection>
      <SectionTitle>Example</SectionTitle>
      <Paragraph>You enter a sales order for 10 pcs. The current inventory is 0,
		but you have an open purchase order for 10 pcs. Actually, the goods have
		already arrived at the warehouse, but are not yet registered.</Paragraph>
   </GeneralSection>
   <GeneralSection>
      <Paragraph>LN can
		register negative inventory in the <GUIRef href="/baanerp/wh/wmd/whwmd2555m000" role="session">Item - Warehouse - Negative Inventory (whwmd2555m000)</GUIRef> session. Negative inventory is
		intended to be only temporary.</Paragraph>
      <List>
         <ListIntro> LN only creates negative inventory if all of the following applies:</ListIntro>
         <ListItem>The <GUIRef href="/baanerp/wh/inh/whinh0100m000#whinh000.nega" role="manual">Negative Inventory Allowed</GUIRef> check box in the <GUIRef href="/baanerp/wh/inh/whinh0100m000" role="session">Inventory Handling Parameters (whinh0100m000)</GUIRef> session is selected.</ListItem>
         <ListItem>The item's <Link href="/baanerp/wh/glossary/glossary#000030" role="glossary" Update="No">location allocated inventory</Link> in the warehouse or location
		  exceeds the item's <Link href="/baanerp/wh/glossary/glossary#000330" role="glossary">inventory on hand</Link>.</ListItem>
         <ListItem> 
            <Link href="/baanerp/wh/glossary/glossary#000332" role="glossary">Inventory on order</Link> exists for the item, warehouse, location and/or lot combination.
		  By default, negative inventory cannot be more than the inventory on order. If,
		  however, in the <GUIRef href="/baanerp/wh/wmd/whwmd4100s000" role="session">Item - Warehousing (whwmd4100s000)</GUIRef> session, <GUIRef href="/baanerp/wh/wmd/whwmd4100s000#whwmd400.niwo" role="manual">Allow Negative Inventory without On Order</GUIRef> * is
		  selected, this constraint does not apply. As a result, confirmation of the
		  picking list line will not be blocked.</ListItem>
         <ListItem>You manually create outbound advice in the <GUIRef href="/baanerp/wh/inh/whinh4525m000" role="session">Outbound Advice (whinh4525m000)</GUIRef> session.</ListItem>
         <ListItem>To create negative inventory using the <GUIRef href="/baanerp/wh/inh/whinh4200m000" role="session">Process Outbound Advice (whinh4200m000)</GUIRef> session or the <GUIRef href="/baanerp/wh/inh/whinh4201m000" role="session">Generate Outbound Advice (whinh4201m000)</GUIRef> session, <GUIRef href="/baanerp/wh/inh/whinh4200m000#create.advice" role="manual">Create Outbound Advice Despite Inventory Shortage</GUIRef> *
		  must be selected.</ListItem>
      </List>
      <TABLE borderstyle="default" space-and-orientation="indented-estimated">
         <TBODY noTR="1">
            <TR no="1" isLast="true">
               <TD valign="top" align="right" rowspan="1" colspan="1">*</TD>
               <TD valign="top" align="right" rowspan="1" colspan="1"> </TD>
               <TD rowspan="1" colspan="1">This option is only available if, in the <GUIRef href="/baanerp/wh/inh/whinh0100m000" role="session">Inventory Handling Parameters (whinh0100m000)</GUIRef> session, the <GUIRef href="/baanerp/wh/inh/whinh0100m000#whinh000.adne" role="manual">Advanced Negative Inventory</GUIRef> check box is selected.</TD>
            </TR>
         </TBODY>
      </TABLE>
      <Note>
         <SectionTitle>Note</SectionTitle>
         <List>
            <ListItem>Negative inventory is not fully possible for lots. You can
			 only use lots in inventory if the lot to be used already exists and is
			 referenced on the outbound order line.</ListItem>
            <ListItem>Because an item's <Link href="/baanerp/wh/glossary/glossary#000001" role="glossary">inventory valuation method</Link> cannot be known before the
			 receipt of the item, all negative inventory transactions are valued against <GUIRef href="/baanerp/wh/domains/ina.valm#ftp" role="option">Fixed Transfer Price (FTP)</GUIRef>.</ListItem>
            <ListItem>If the inventory on order is (partly) received in the
			 warehouse (when the receipt is confirmed in the <GUIRef href="/baanerp/wh/inh/whinh3512m000" role="session">Warehouse Receipts (whinh3512m000)</GUIRef> session), LN subtracts the received quantity from the
			 negative inventory quantity. If the received quantity is equal to or more than
			 the negative inventory quantity, LN deletes the negative inventory record.</ListItem>
         </List>
      </Note>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Backflushing</SectionTitle>
      <List>
         <ListIntro>In case of <Link href="/baanerp/ti/glossary/glossary#Backflushing_ti" role="glossary">backflushing</Link>, LN can also generate
		  negative inventory records. LN generates negative inventory for an outbound order line for which
		  backflushing applies if, in addition to the above mentioned conditions, all of
		  the following applies:</ListIntro>
         <ListItem>The item is delivered but the receipt is not yet registered.</ListItem>
         <ListItem>The item is picked from the warehouse based on a backflush
		  order.</ListItem>
         <ListItem>The orders or operations are reported completed in <GUIRef href="/baanerp/ti/sfc" role="module">Shop Floor Control</GUIRef>.</ListItem>
      </List>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/ti/onlinemanual/000167" role="manual">Backflushing</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>