Question: We have products displaying negative available quantities in Inventory Matrix Inquiry. What causes this condition?
Answer: If the Hold Inventory for Backorders check box is selected on the Warehouse tab in Product Location Maintenance for a product/location, then a negative available quantity is possible. Selecting this check box causes the software to take into account any backordered products in the available quantity.
Example There are two orders placed for a product. Each order is for a quantity of 12 (total of 24 units ordered). Inventory Matrix Inquiry displays a quantity of 16 on hand, 12 allocated, 12 backordered, and -8 available. This is correct because the actual available quantity is 4 less the backordered quantity of 12. This nets out to - 8 available.
Negative quantities will appear if the calculation of on-hand minus pending results in a negative number.
Example 0 on-hand and 6 pending equals -6 available.