How to handle accounting entries in transactions involving negative stock?

Hi All,

  1. I have allowed negative stocks by checking “Allow Negative Stock” check box in stock settings.

  2. I created an item ITEM1 and assigned buying price of INR 100 and selling price of INR 200.

  3. I created a DC and Invoice for this item with quantity = 1.

So the stock balanace is -1.

  1. Now I have created a purchase entry and purchase invoice for ITEM1 with quantity = 1.

Now in balance sheet it shows…

How to handle this??

I read the below mentioned thread…

and tried to post a jv…

and got following error…

Please suggest.


@Basawaraj_Savalagi Quick advice. Don’t do negative stock. It will instill a lot of discipline in the users.