The Risks of Negative Stock
Allowing negative stock balances in your database distorts asset values, causes FIFO cost errors, and leads to customer stockout disappointment.
Preventive System Controls
- Hard Database Blocks: Prevent sales transactions when physical stock is zero.
- Cycle Count Audits: Audit small sections of your inventory regularly to reconcile stock balances.
- Supplier Lead Time Alerts: Track supplier lead times to trigger purchases before stockouts occur.
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