Allowing physical negative inventory may have undesirable consequences in inventory accounting, especially if the inventory costing principle is Actual and the valuation method is either FIFO or Weighted average. Most of the issues that are related to physical negative inventory can be mitigated by using the correct configuration and maintenance of data.
Key concepts Inventory dimension An inventory dimension can have a Physical value and a Financial value. The setting of the Physical value controls whether a dimension is active for Inventory management and Warehouse management. The setting of the Financial value controls whether a dimension is active for Inventory accounting in Cost management.
Dear readers, The SCM-costing team is happy to announce that an update for the “Post to charge” accounting principle is finally ready. The update includes a significant change in the ledger accounting logic consumed by the “Post to charge” accounting principle.
