Negative inventory is an accounting trick to keep you from overselling even when orders are deducted from a location that has less inventory available in SKULabs than was found on the shelf. When locations or warehouses are combined to push your stock levels to your sales channels, we'll add all of these locations together to come up with the total available inventory.
Usually, negative inventory is a mistake made by the picking team. Tracking this allows us to account for the transaction without either blocking them from fulfilling (slowing down the process) or releasing the inventory for sale to someone else (overselling).
Automatically deducted orders
If you're shipping outside of SKULabs or have a POS connected to SKULabs, we may in rare cases default to a location that does not have any inventory as a means of quickly deducting an order from your warehouse accountably. When we know the order came from a specific warehouse but it's not assigned this will ensure the inventory transaction is accounted for properly.
How to correct for negative inventory
If you have other locations within your warehouse, or if you have a split-warehouse the total combined inventory level between the locations may still be accurate.
Removing the negative inventory may increase your total available inventory.
If this warehouse is used in combination with another warehouse, or if you have multi-location inventory and there is another location with this item in stock still you should use the inventory reconciliation feature to merge these two inventory counts. Alternatively, use a cycle count to update all locations for an item making sure your overall true on-hand inventory remains unaffected.
If you have one warehouse with warehouse-based inventory, you may simply zero out your negative on hand inventory without risk.