Inventory Valuation in Negative

Hi Experts ,

I have item with average costing method and my valuation report is showing negative figures, i am not able to understand why it is negative . while i checked all parameters like If exclude Expected Cost from Valuation report then Quantity and Value can go in negative.There can be MRN which still have not invoiced and because of this Actual Cost have not came system.

i tried to use several post related to this topic but unable to find out the solution , can some one explain a short cut method so that we can easily identify the effected entries and the way we can correct it .


Vikas Kumar


Please check for item which is showing negative value.

There will be some transaction not completed. ( Invoice not posted / production order not ended like that).



Thanks Kangeyan for quick response , that i already did it and found nothing …


Vikas kumar

Have you ran the Adjust cost Item Entries…if not run it and check…

Yes Nandesh, its common practice , i did it . Now dont know the further effect but i revalued the stock…

but still not able to know the right method

It sometimes happens with Average costing even if all required actions are done - mostly in cases, when normal workflow sequence is broken, e.g. sales before purchases are entered into the system (together with illogical Posting dates or no - that doesn’t matter) and like. Usually it appears as zero item Qty, but some Amount left, and that Amt can be either + or -

These are difficult to get cleaned up, no “general-use” instructions can be provided - each case must be examined separately to find the reasons. For ideas where to start at you may search the forum, unfortunately such cases with neg. inventory values have come up rather regularly.

Dear Modris,

Many thanks of revert , i tried a lot for this unfortunately did not find any full proof solution , you are requested if possible to share some solution how to rectify or what precaution should be taken so that this will not happen again in future .


Vikas Kumar