Negative Stock Troubleshooting

Stock Distortion

Negative stock can distort the figures that appear on the profit reports.

The figures that appear on the stock report are calculated by averaging out the quantity, multiplied by the cost price. Even if some of that stock has been allocated or sold, the 'goods out' value will still take these items of stock into account. Therefore as the 'goods out' cost of the stock has been reduced, the profits will be artificially boosted when you run your reports.

Stock Allocation

The Allow Negative Stock option does not check for previously allocated orders. It is advised that you set the program to allow negative stock before you start to allocate stock transactions.

Sage Line 50 will not allow you to allocate stock that you do not have when you do not allow negative stock. If you switch the Allow Negative Stock option on, you can then allocate excess stock to an order, thus creating a negative stock balance. If you then proceed to deselect the Allow Negative Stock function, you will not be able to process this transaction because Sage Line 50 will detect the stock shortfall.