Stock never below zero
By default no sale, transfer, production issue or return can take stock on hand below zero. See the three policies, what is exempt and how to fix it.
What it is
Stock on hand below zero means the books say goods left that the business never had. It has no real cost, so cost of goods sold is guessed and corrected later. For that reason the global standard — and the default for every new business — is never: a movement that would take stock on hand below zero is refused, with a message that says which item, where, how many are on hand and how many were needed.
Orders and pre-orders can still be taken without stock. Only the goods going out is refused, until they are received, transferred in or counted.
Who it is for
- Owners who want stock and cost of goods they can trust
- Warehouse and shop staff who meet the refusal and need to know what to do
- Bookkeepers and auditors who need a control with a trail
- Businesses moving from software that allowed negative stock
Before you start#
The setting is in Settings › Inventory › Stock › Stock below zero. Changing it needs access to that settings page, and every change is recorded in the settings audit.
Step by step#
- Open Settings › Inventory.
- Under Stock below zero, choose one of the three policies.
- Save. The policy applies to every movement from then on.
The three policies#
| Policy | What happens |
|---|---|
| Never — refuse the movement | The movement is refused. Recommended and the default. |
| Allow, and flag it for review | The movement posts; pages warn, and the books check lists every movement of the last 90 days that went below zero. |
| Allow (not recommended) | The movement posts with no review list. |
What is checked#
Every path that lowers stock on hand follows the policy: picks and one-step fulfilment, direct invoices, the till, kit components, transfer picks, production material issues and backflush, purchase returns, and deleting a purchase receipt, transfer receipt or sales return whose goods were already used. A deletion that would go below zero is refused with "the goods were already sold or used — receive or count the stock first".
Stock adjustments are always limited to what is on hand, whatever the policy. A negative opening stock figure is refused under Never.
What the screens say
Under Never, the sales order form, the till and the transfer order say an item "will be refused when the goods go out" instead of "it can still be ordered". The till stops checkout of a plain line beyond stock with a message on that line, and pick sheets show what is on hand before you pick short.
What is always recorded
Some figures are outside facts, so they are recorded rather than refused:
- a stock count result (it sets stock to what was counted);
- a connected store's own stock figure;
- a till sale made while offline — the goods were already handed over.
An item already below zero can always receive stock, but cannot go lower.
Fixing stock that is already below zero#
Reports › Books integrity checks the books every night (and on Run now). Under Never, stock below zero is an error to clear; under the other policies, a warning.
- Receive any missing purchases first — that is usually the real cause.
- Otherwise use the check's Prepare negative stock fixes: it prepares stock-in adjustments to zero at average cost, for approval.
- Or count the items with a stock count.
How it posts to the books#
The policy itself posts nothing. Refusing the movement keeps cost of goods sold at the real cost of goods held. The fixes post like any adjustment or count.
Limits and what is not there yet#
- The policy is one setting for the whole business; there is no per-location or per-item override yet.
- There is no approval-based override right; a refused movement waits for the stock.
- Selling more than you have at the order stage is allowed by design (a backorder); only the goods leaving is checked.
Questions#
A customer wants an item we are out of. Can we still take the order?
Yes. The order, and a pre-order, can be taken. The pick, delivery or till sale is refused until stock arrives.
Why was my pick refused when the product shows stock?
The figure that counts is on hand at the pick's location. The stock may be at another location, held in a lot that is expired or not released, or already taken by another pick.
We sell at a market without internet. Will offline till sales be refused?
No. Sales made offline are recorded when the till reconnects, because the goods were already handed over. Any shortfall then shows in the books check.
Should we choose "Allow, and flag it for review"?
Only if your process needs it, for example goods sold before the paperwork for receiving them is entered. Review the flagged movements regularly.