Physical Inventory of Negative Stock adjustment

[Former Member]

We are in process industry and have permitted negative stock in some storage locations. We need to nullify the negative stock every month.

In standard SAP, it is not possible to do Physical Inventory/count of negative stock in SAP via transaction MI01, MI04, MI07,MI20 although PI documents can be created, In order to nullfy negative stock if we do zero count, system does not permit  in these transactions.

But in transaction MI09 - Enter W/o Document Reference, we can set tick mark in zero count. If we do that way system will nullfy the stock account.

Though it is serving our purpose but I am not sure if this is the right way to nullify the negative stock.

Accounting entries generated when we do MI09:

Stock A/c - debit

Physical Inventory Account- Negative

Another question, I read in some thread that if negative stocks are there period cannot be closed? is that right. Since I cannot test until 31 July.

Please guide what is the right way of nullifying negative stock, Is my approach of using MI09 right, what about effects of negative stock on period closing.

[ajitkumar]

accounting entires are the same when you post a gain during physical inventory. is the material document created with mvmt 701?

[Former Member]

Dear megha,

If possible try to use Mi10.

while doing period closing , check the both boxes of allowing negative values.

[Former Member]

any replies please

[Former Member]

MI09 is also right way to enter physical count with out any reference document.Is there price in the material master for that material?

Regards,

Narendra

[Former Member]

yes there is MAP in material master, negative stock and negative value

[Former Member]

After posting the negative difference adjustment please check on which cost center it is posting with u r FI & CO consultant.