How to setup Negative Stock Balance

Overview:

QNE AI Cloud Accounting allows users to control whether transactions can proceed when stock balances fall below zero. With the Negative Stock Balance Control feature, businesses can configure how the system responds—by allowing, warning, or blocking transactions—based on stock availability. This helps maintain inventory accuracy, avoid overselling, and support better stock management, especially for users with the Advanced Stock Control module.

Scenario:

A company using QNE AI Cloud Accounting frequently processes high-volume sales across multiple locations. To ensure stock levels are accurate and avoid overselling items they don’t physically have, they want the system to prompt or restrict transactions when stocks are insufficient. Using the Negative Stock Balance Control feature, they can configure the system to either allow, warn, or block such transactions depending on their operational needs.

Solution:

1. Go to Company > Maintenance > Advanced Options > Stocks tab. Click the Setup button under Negative Stock Balance Control to configure the settings.

2. In the pop-up configuration window:

• Enable the toggle to activate Negative Stock Balance Control.
   

• Set the control strategy:
  

  • By Location – Applies stock checking per specific location (should have an Add On module: Multi-Location).

  • By Stock – Applies stock checking across all locations.
    
    

• Choose the control type:
  

  • Allow – No prompt; transactions proceed regardless of stock level.

  • Warning – Displays a prompt if the quantity goes negative, but allows the transaction.

  • Block – Prevents the transaction if it causes negative stock.

• Select the types of transactions where this check will apply. By default, all the following are included:
  

• Quotation

• Sales Order

• Delivery Order

• Sales Invoice

• Cash Sales

• Sales Debit Note

• Purchase Returns

• Cash Purchase Refund

• Stock Adjustments

• Stock Out

3. Click OK  to apply your changes.
Note: This setup is available only on the Pro Plan. 

• For users not subscribed to the Pro Plan, the feature can still be toggled ON/OFF, but advanced configuration is not accessible
   

• Even without the add-on, the system will still show a standard warning for negative stock unless the toggle is turned off.
  
  

Application:

Example 1: Per Location + Block

A user tries to issue a Delivery Order from Warehouse A. If the stock is insufficient at that specific location and the setting is set to “Block,” the transaction will not proceed, and a prompt will show the current balance, quantity to be deducted, and the resulting final quantity.

Example 2: Per Stock + Warning

A user issues a Sales Invoice, and the total stock across all locations is insufficient. If the setting is “Warning,” a prompt will appear, but the transaction can still be completed.

This feature ensures users remain informed about stock levels and helps reduce errors in inventory while supporting operational flexibility across different departments and transaction types.