Using Serial Numbers with Inventory Items

Negative inventory levels are not possible for serialized inventory items because every serial number represents an actual item in stock.

If you have multiple locations turned on, the quantity on hand must be a whole number at every location.

Solution

You need to buy or manufacture enough of the item to bring the inventory level to zero or higher before you can turn on serialization for the item.

If you have bought, sold, or used an item in fractional amounts (in item assemblies or bill of materials), you will not be able to turn on serialization until the quantity on hand is a whole number.

If you have been using FIFO inventory costing for this item, it is possible for two cost layers to have fractional quantities even if it looks like the quantity on hand is a whole number. For example, two layers that have quantities of 1.5 and 3.5 units. Each cost layer's inventory count must be a whole number.

If you have multiple locations turned on, the quantity on hand must be a whole number at every location.

Solution

Adjust the fractional amount out of inventory. Alternatively, you can wait until you sell or use up the remaining fraction of the item and then turn on serialization for the item.

Serial numbers are assigned to the smallest unit of measure for an item and cannot be broken into a smaller unit. If the relationship between the smallest unit of measure and any other unit of measure is fractional, serialization cannot be turned on for the item.

Example

Your company uses the following units of measure for an item:

• Buying Unit - 5
• Stocking Unit - 10
• Selling Unit - 2

Dividing the Selling Unit into the Buying Unit produces a fractional number (2.5). Because you can buy, sell and use items using any unit of measure you define, it's possible to end up with fractional quantities of this item, even if you do not have them at the moment. Relationships like this are not allowed for serialized items.

Solution

Change the item's units of measure on the Units tab to remove the fractional relationship.

If you have already used an item in a transaction, you cannot change the relationship between its units of measure. Instead, you need to:

1. Add a new item record that does not have a fractional relationship between units of measure
2. Adjust the quantity on hand for the original item out of inventory
3. Adjust the same quantity into inventory for the new item