Project Material Management: Issuing Materials with Insufficient Quantity on Hand

This topic describes how the system processes lines on the Project Materials (PM306500) form when you initiate a material issue creation and the required quantity exceeds the quantity on hand.

Issuing Materials with a Negative Quantity Allowed

A stock item may belong to an item class for which the Allow Negative Quantity check box is selected on the Item Classes (IN201000) form. In this case, when you click Create Material Issue on the Project Materials (PM306500) form, the full required quantity is added to the material issue even if it exceeds the quantity on hand. The settings in the Shipment Settings section on the General tab of the Sales Orders Preferences (SO101000) form aren't used.

When you confirm the material issue and the generated inventory issue is released, the system creates a new cost layer for the quantity that exceeds the quantity on hand.

Issuing Materials with a Negative Quantity Not Allowed

A stock item may belong to an item class for which the Allow Negative Quantity check box is cleared on the Item Classes (IN201000) form. In this case, if the required quantity exceeds the quantity on hand when you create a material issue, the system checks the settings in the Shipment Settings section on the Sales Orders Preferences (SO101000) form as described below.

Material Issue for a Single Line. Suppose that you select only a line for an item whose quantity on hand is 0 and click Create Material Issue on the Project Materials (PM306500) form. The system checks the state of the Create Zero Shipments check box on the Sales Orders Preferences form:

• Cleared: No material issue is created.
• Selected: The material issue is created and includes a single line with a quantity of 0. You can't confirm the material issue when the item's quantity on hand is 0.

Material Issue for Multiple Lines. Suppose that you select a material line whose quantity on hand is 0 and at least one line that can be issued, and then click Create Material Issue on the Project Materials form. The system checks the state of the Add Zero Lines for Items Not in Stock check box on the Sales Orders Preferences form:

• Cleared: The material issue is created and includes only the items that can be issued. The material issue has no lines for items whose quantity on hand is 0 and for which negative quantity isn't allowed.
• Selected: The material issue is created. It includes all the selected lines. You can't confirm the material issue when at least one item's quantity on hand is 0.

For details about issuing stock items when a negative quantity is allowed, see Item Costs and Valuation Methods: Items with a Negative On-Hand Quantity.