Negative valuation

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1

Hi Community, we have an issue of negative valuation of an item. How can we fix it?

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2

hi there,

you can go to the Stock Settings and search for “Allow Negative Stock” and turn that off.

3

I have turned off: Allow Negative Stock, but still system showing -94,764.2500 Cr to stock valuation.

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Ialso have done Repost Item Valuation against that item showing negative valuation, still issue exists. How can I overcome this?

4

disabling Allow Negative Stock only prevents future transactions from creating negative stock, it does not correct existing valuation issues… similarly, Repost Item Valuation only recalculates values based on the current Stock Ledger, so if there is an incorrect or historical transaction causing the problem, the negative valuation will remain

I would recommend checking the Stock Ledger for the affected item and looking for backdated transactions, stock issued before it was received, incorrect valuation rates, or any abnormal Stock Entries, Purchase Receipts, or Delivery Notes. also check the valuation method (FIFO or Moving Average)..

5

Hi @Naveed1

Please check if any item valuation posting is stuck. you can repost them by using item reposting doctype.

Further stock recon is the last resort to over ride correct qty and rate on a certain date to kill negative valuation but difference will hit accounting abnormally.