What is negative stock in SAP MM-IM - Inventory Management?

SAP Term: negative stock

• Component: MM-IM

• Component Name: Inventory Management

• Description: A temporary situation that occurs when a material is physically available in stock but the relevant goods receipts have not been made. If a withdrawal is posted before the outstanding receipts, the book inventory figure can temporarily become negative.

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• Key Concepts: 
  Negative stock is a situation in which the quantity of a material in inventory is less than zero. This can occur when goods are issued from inventory but not yet recorded in the system, or when goods are returned to inventory but not yet recorded. Negative stock can also occur when goods are damaged or lost. 
  
  How to use it: 
  In SAP MM-IM Inventory Management, negative stock is managed by setting up a negative stock indicator for each material. This indicator will determine whether the system allows negative stock or not. If the indicator is set to “No”, then the system will not allow negative stock and will display an error message if an attempt is made to issue more goods than are available in inventory. If the indicator is set to “Yes”, then the system will allow negative stock and will not display an error message. 
  
  Tips & Tricks: 
  It is important to monitor negative stock levels closely, as they can lead to incorrect inventory balances and inaccurate financial statements. It is also important to ensure that all goods movements are recorded accurately and promptly in order to avoid negative stock situations. 
  
  Related Information: 
  For more information on managing negative stock in SAP MM-IM Inventory Management, please refer to the SAP Help documentation.