Unleashed supports negative stock.  However, we do not recommend that any business use negative stock if at all possible. Before deciding whether to turn Negative stock on we strongly suggest critically analysing your processes to see if there is a process amendment you can make to avoid this situation completely.  If you find there is no other way, this is how we recommend using negative stock and why;

1.       Raise a sales invoice as you normally would however DO NOT complete the sales order.  Just save the order which will place it into a parked status.

2.       Purchase the goods, or manufacture the goods and then receipt them into stock as soon as possible (once you know all the costs of the purchase).

3.       Once you have stocked the item, then you can complete the original sales invoice.

The reason why we recommend this process is because if you complete the sales invoice this will register having sold the item with no cost (because you have none in stock), which means your margins will all be 100%, which also means the Cost of Goods Sold for that item will be $0, which means that your Gross Profit in your P&L will also be incorrect.  Ont he balance sheet, your Stock on Hand figure will also be incorrect by the same value as your cost of sales.

So to get around this situation, if you follow our process as above, as soon as you receipt the purchase order in it will give you an average cost of your goods that will populate your P&L and Balance Sheet with the appropriate costs of the items sold.