Negating inventory can be used to help with destructive testing (the act of testing a sample destroys it), or simply when discarding inventory. Destructive testing can automatically post, but discarding inventory for a failure usually just creates an entry for review afterwards.

You can make negative adjustments manually and automatically. Automatic negative adjustments are used with destructive testing; automating the adjustment with automatic posting works as the test state of a pass or fail does not change the result of the product being destroyed.

Negative inventory adjustments are commonly used for two scenarios:

1. Destructive testing, where the act of testing a sample destroys the product being sampled.
2. Test failure, where the product is disposed immediately upon test failure.

Prerequisites

• Use a W1-ENU-Extended base data with “Contoso” sample demo data as a baseline with the “WHITE” location, the “WRB-1002” item, and vendor “40000”.
• Ensure the Assisted Setup Wizard was run.
• Have a quality inspection test template.
• Have a quality inspection test generation rule.
• Have a quality inspection test for the WRB-1002 item with a known lot that is unblocked and available to be shipped.
• Ensure all batches are defined on the Quality Inspection Setup These are not set up by default in the wizard.

Steps

1. Create a test for a DPP location, such as “WHITE” (easiest is to trigger an automatic test based on a put-away), for a lot tracked item.
2. Navigate to the Workflows page and select New Workflow from Template, select the appropriate workflow, and select OK.
3. Set the Code, Description, and Category fields appropriately.
4. Select the When Event field in the Workflow Steps section and select A Quality Inspection Test is Finished.
5. Select the On Condition field and set to “Always”.
6. Select +Filter, select “Grade Code”, and set to “FAIL”.
7. Select OK.
8. Select the Then Response field and select “Create Negative Adjustment” (Conditions page opens).
9. Leave the Source Location and Source Bin filters blank.
10. Select Entire Lot/Serial/Package.

11. Input a reason code (Optional).
12. Leave the Source Location and Bin Filters fields empty.
13. Select Just Create Entries.

14. Close the screen.
15. Enable the Workflow.
16. Close the Workflows page and locate the quality inspection test.
17. Input values to fail the test.
18. Finish the test (triggers the workflow and creates a negative adjustment item journal entry).
19. Open the warehouse or item journal batch (depending on the location) and locate the negative adjustment line in the journal.