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Mar 10, 2009 at 02:44 PM

Transaction Value with negative inventory


Dear Experts, I need some help understanding why negative quantity inventory can result in a huge transaction value for an inventory item. Let me give an example.

We do allow negative inventory. We manage inventory by item group and we use FIFO.

We have an inventory item, let's call it ABC with a purchase price of $27.50 So far that item had only very few inventory transactions. In one of the transactions the inventory went negative (-1). Next day the problem was fixed through a stock posting which brought the inventory balance back to zero.

The result of that last stock posting was that the transaction value was 262.28 and the cumulative value on the Inventory Audit report shows 234.78! I have no idea why all of a sudden the transaction value is so much higher than the actual purchase price of the item.

Any ideas?