Negative Inventory

Tags: Glossary

A situation where the inventory count shows a negative balance.

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What does Negative Inventory mean?

Negative inventory refers to a situation where a company’s inventory records show that it has fewer items in stock than it actually has. This can occur due to a variety of reasons, such as errors in data entry, theft, or inaccurate inventory tracking. Negative inventory can cause problems for a business, as it can lead to stockouts and delays in fulfilling orders. It is important for companies to identify and correct negative inventory as quickly as possible to maintain accurate inventory levels and prevent disruptions in the supply chain. 

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