Hi again,
Negative Inventory configuration is our best practice recommendation. Most of our client sites allow for negative inventory. In practice, negative inventory works really well. You have to monitor negative items and investigate items that are not being corrected by the timing of PO receipts. In that context, we assume that the Auto-Invoice will simply take what is on the sales order as having been picked.

Our thoughts are, if they picked it in the warehouse and shipped it, regardless of what Adagio Inventory thinks is available or on hand, we will be invoicing for what was shipped. If inventory is being managed by a WMS solution, then you cannot pick and ship what is not in WMS but we're not dealing with WMS inside Adagio Inventory.

You are correct in that if you do not allow for negative inventory, then you really should not use Auto-Invoicing.

The problem is that there is not enough shared knowledge of what really works well as a configuration in Inventory. Order Entry and Purchase Orders. If we attempt to take a specific feature or configuration out of context and say what will happen now with this or that setting, then we would not have a practical or efficient system solution.

It's like FIFO inventory. No one should really be using it in Adagio because of all of the costing issues that it creates with adjustments and physical inventory counts. And I'm saying this with my background of being a CPA.

Auto Invoicing based on shipped qty with allowable negative Inventory settings is a very practical system solution.

Thanks,
Brian