A common question we get is:
"Why is my financial inventory value lower than my in-stock value — or even negative?"
This guide explains the reason and how TRAEDE handles stock and financial values differently.
Key Concept: Two Parallel Systems
TRAEDE tracks inventory using two systems:
| Type | Purpose | Follows |
|---|---|---|
| In-Stock Value | Tracks physical stock movement | Real-life inventory changes |
| Financial Value | Tracks booked inventory for accounting purposes | Booked data only |
Example Scenario
You receive 200 items on a Purchase Order (PO), but don’t book it yet.
You then invoice 15 items.
| Value | |
|---|---|
| In-Stock | 185 (200 - 15) |
| Financial | -15 (Only invoices booked) |
This happens because financial value only increases once the PO is booked. Until then, invoicing stock you've received but not booked results in negative financial value.
Why TRAEDE Allows This
Sometimes goods are received before the invoice is available or booked.
To keep operations running:
You can send goods out immediately (real stock updates).
Financials wait for the purchase to be booked.
This approach ensures:
Operational flexibility.
Accurate accounting based on booked documents.
✅ This behavior follows accepted accounting practices.
How to Fix Negative Financial Inventory
Go to the purchase order.
Book the PO (ensure your financial settings are configured — contact TRAEDE support if unsure).
Refresh your inventory dashboard.
Once booked:
Financial value is recalculated.
In-stock and financial values should align (unless there are new pending POs).
Notes
Manual inventory changes (e.g., via importer) are booked immediately.
Only purchase orders require manual booking for financial inclusion.