Sunday, May 7, 2017

Negative Inventory & Prevention

Hi Folks,

I believe that most of us have already came across having negative inventory in Odoo due to various reasons which normally, customers do not expect so I would like to share my thoughts on having negative inventory & valuation in Odoo with reasons and prevention for it. 


I did make some analysis that why Odoo creates negative inventory in which I may miss something. Normally, if we consume or ship or move more than available in inventory, we can have negative inventory and here is what, I found:

Most common reason is to click on "Force" buttons on Shipment and Manufacturing orders. Normally, we should avoid it and hide it before we go live. It is a good practice to do it.

During shipping to the customer, Odoo allows you to enter more than ordered quantity but during validation of the Shipment, if you enter more than available, Odoo creates a negative inventory for extra quantity.

Same case for Manufacturing, if you enter more than available quantity during validating Manufacturing order, Odoo creates a negative inventory for extra quantity.

During transfer of stock, if you move your products from wrong lot number in which you never received of you do not have enough quantity for it, Odoo creates a negative inventory for extra quantity.


First of all, we can hide the "Force" buttons from the Shipment and Manufacturing Orders screen.

We can add restriction during validating Shipment and Manufacturing orders for stopping users to validate them with more than available quantity, we should be find with more than ordered quantity.

We can also add restriction during transferring products from wrong lot number, in which we never received, during validating Internal transfer. 


It is a good practice to stop it in advance, before we go live, specially if we are working with Real time configuration as each and every transfer create accounting entries. We can have a negative inventory with big numbers and same can reflect in accounting entries which will be difficult to fix and improve later. 

I hope this post will be helpful and your comments are welcome.
Thank you and good luck!