There should still be a setting on the Set Up IM Options screen to determine whether a company will allow negative inventory in any warehouse, but there should also be a setting at the warehouse level to allow negatives or not. This would allow companies to tightly control shipping warehouses, but allow flexibility in production warehouses where backflushing large bill of materials occurs. For example, in the automobile industry, a work order may contain hundreds of material issue lines. There are many times when the posting of transfer orders lags behind issuing materials to work orders which causes temporary negative on hands.

by: Doug B. | over a year ago | 2 - Manufacturing