Questions and Answers

Q: This knowledge base article explains the purpose of overshipments, the reason for not being able to overship and the reason on why having a negative on hand value for a location.

A: There is a feature in Sage Pro that allows overshipments of items at locations.  This creates a negative on hand quantity at the location.  These shortages can then be addressed when new inventory is received.

This is an optional feature of the product that is used by many companies.  The situation usually involves knowing the stock has been received but has not been processed in the system.  Another common reason for overshipments is if the company receives at one location and then transfers to another for distribution.

The feature allows for flexibility in creating and shipping orders without waiting for processing or transfers.  When the item(s) is received in the system at the proper location, the program will prompt the user if they would like to apply the receipt to the shortage (negative position).

It will also automatically make any cost adjustments needed at this time.

This feature is not available in a FIFO or LIFO costing system company.  Lotted items are also
not available for overshipments.  Also, the system privileges that must be enabled for the desired operator to be able to process overshipments are SYIOVR01, 02, and 03.  In addition, overshipments can also be prevented by turning off these same system privileges.

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