Implications that we could have if we allow Negative Stock in SAP

Hi Gurus.
Can I have in details the Implications that we could have if we allow Negative Stock in SAP please ?
Thanks
Nainar

Hi Nainar,
Implications in the sense, if you try to issue more stock than the existing. System pop up an error message that insufficient stock.
If you activate the Negitive stock then the system allows you to issue the stock.
Ex : Suppose ur company has power cut and u use generator at the time of power cuts.Now that u use diesel for generator, if suppose u have stock physically avaliable in ur plant and u didnt enter the GR(not avaliable in system). At this point u have to issue the diesel to run generator, hence system will show you negitive stock(-ve quantity) the amount u have issued. Later when u enter GR, it will tally issed quantity.
To activate Negitive stock at plant level, follow the path
SPRO>MM>Inventory Management and Physical Inventory>GI/Transfer Postings->Allow negative stock.
BR,
Krishna

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