Issuance of Stock Items with negative balances

Hi, I am new to ERPNext. I just generated a stocks balance report and discovered that a lot of the stocks were having a negative balances.

  1. Does ERPNext allows stocks issuances even the stock balance is negative.
  2. What are the causes of the negative balances in the stocks?
    Please enlighten me. Thank you.

In case back dated entries are made in the system, it can lead to negative stock.

Also,in case you have “Allow Negative Stock” checked, the system would allow Negative Entries.

You can also read this post to know about the side effects of allowing this.

Hi Sir. Thank you for the help.