Companies face numerous challenges in today’s competitive environment, such as maintaining sales shipments, inventory overage and negative inventory. These issues often result in low productivity and increased operational expenses. This negative quantity sometimes causes a nuisance while tracking the inventory of items in NetSuite. ERP Buddies has been working for the improvement and betterment of its clients’ businesses for 10 years globally. We are multinational cloud solution providers who work diligently for our client’s profitability 24/7 and affix their problems
Understanding the problem is imperative before finding its solution. Negative inventory items issues arise when a business has an insufficient inventory count or the item in stock is below zero, indicating inventory mistakes and a flaw in the inventory management procedures. This stipulates that the inventory items are either missing or are in insufficient quantity. Too often, companies overlook it until it becomes an inconvenience. Rather than being proactive, they try to make inventory adjustments only when the issue arises during sales transactions. Inventory Accuracy is a necessity for a business to run efficiently.
To maintain the inventory status, businesses must regularly evaluate inventory. A bad inventory management system may eventually become a huge problem for your company if you do not take care immediately. To maintain an accurate list, you can take steps to fix this issue.
Inaccurate inventory records cause an internal hassle and affect business rapport with clients. Incorrect on-hand inventory records disturb the smooth functioning of the company.
One way to resolve inventory management issues is to update or change your current system to be effective. You can also hire someone to help you with this or spend more time updating your inventory management processes.
Many factors can lead to issues in inventory costing. One of the problems can be time. This can happen if the product is written in full stock even though it is still in inventory assemblies or production. Negative supply can be caused by delays in sorting products on warehouse shelves, incorrect values added in the system or when inventory expenses records are not maintained.
There may be production issues that result in fewer products than required. This can happen when the invoice is unclear, for example. If you have many warehouses with the same type of goods, this can lead to poor balance. If the inventory is placed in the wrong location, it may result in incorrect inventory records, resulting in a slight difference or a ginormous amount
To determine the seriousness of the issue, consider if there is a chance that the outbound shipment for your product is low on stock or cannot be completed. This might aggravate customers if their order is not fulfilled, and they usually end up switching to competitors if there is a long waiting time.
When there are negative inventory quantities in Inventory reports, it can lead to record-keeping and accounting issues. There may be many items in stock. For example, if some are late and have problems with paperwork, they can still come to the warehouse. If you place an additional order for the same product to be sent to the warehouse, you can close twice as much.
Many other problems can arise, and you will find that they can negatively impact your business, your bottom line, and your customers’ trust. Hence, it is crucial to take measures to resolve this discrepancy.
The key element to avoid negative inventory is to be proactive. The first step would be to identify the source of the negative list and implement production and inventory management software in your system.
Why is it negative? Where did the problem occur? Once you identify the source, you can be sure it won’t happen again. Is it a time issue or a situation issue? Are you having problems with the manufacturing process? Make sure that online marketing platforms are linked to your product and that it is authentic.
That way, you can reduce the risk of customers buying things that seem to be in stock even though you have negative inventory. You don’t want your customers to think there is something available though the business is still waiting for the shipment to arrive.
NetSuite comes with an inventory reconciliation feature to fix these issues. Such inventory negatives materialize when businesses record the sales, usually before the sales transactions happen or the decrease in inventory is not realized earlier. Using Enhanced Validations and Defaulting SuiteApp, the negative checklist is generated through different entries, including item fulfillments, standalone invoices, and adjustments to the individual inventory items.
After setting this preference, you can’t post transactions that include items with a negative inventory. If this preference is not set, a warning message will be displayed when you try to post the transaction to the merchandise.
Here’s how you fix your inventory Costing:
Or you can go to Installing the Enhanced Validations and Defaulting SuiteApp and follow the instructions.
And you are good to go!
OR reach out to us to fix all your negative inventory issues.
Negatively stocked items could be a home wrecker if they’re not properly managed. However, this idea is to identify negative stocks as a problem and take the necessary actions to eliminate the issue from your processes. How negative items appear on your system may vary depending on which tool you use to manage your inventories. That’s why it’s best to get set up with NetSuite Experts like ERP Buddies, whose priority is your business’s smooth functioning so you can easily stay on top of your inventory’s movement.
ERP Buddies is a North American Official Oracle NetSuite Solution Providers with diverse experience in implementing NetSuite ARM solution for a broad array of verticals
With offices in the U.S, Canada, Europe and Asia, our experts are accessible globally and make it their priority to create a smooth and positive experience for clients. Our experts assist clients throughout the entire implementation process, with on-site support and consultation, along with additional assistance in customizing your system to guarantee it meets your business needs.