Most inventory transactions are for positive quantities. However, to register a correction, a negative inventory quantity can be entered.

For example, an inventory clerk does an unplanned receipt using Receipts–Unplanned (3.9) for 10 items at a cost of $20 each.

A later count shows only 9 items were actually received. A correction is made by executing the same program for a quantity of –1.

Two different conventions can be used to represent this correction transaction in the GL. The standard processing is shown in Standard Posting for Negative Receipt, which shows the transaction for the original issue of 10 and the correction of –1.

In the standard processing, the correction credits the account that was previously debited and debits the account that was credited.

When correction postings are used, the correction transactions are represented by a negative debit and negative credit instead of the standard processing. In the current example, the transactions are shown in Correction Posting for Negative Receipt, which uses the transaction for the original issue of 10 and the correction of –1.