Negative on-hand parts inventory quantities that are found on the parts manager’s reports, or in the DMS, are a sign of parts management trouble – if there are more than a few.

These negative quantities get cleaned up throughout the day, as the paperwork gets posted. If there are more then a few in your parts managers report, and they roll-over each day, this is a sign of trouble.

Typically, it means the count of actual on-hand parts inventory is frequently incorrect. It could mean there is a paperwork issue, where parts are not getting posted fast enough, or correctly when parts are received. It also means that there is a spread between what is posted in physical parts inventory vs. what is posted in Accounting parts inventory.

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