We’ve encountered a critical issue with a Work Order Issue (WOIINC1116) that generated an incorrect GL impact of $113,909.86. Upon investigation, we noticed that the item (BM-567-233) had a negative average cost and a negative inventory value of -$113,275.53, which should not normally happen under standard inventory valuation logic. Here’s what likely happened: • On March 21, 2025, the GL impact was correct: ~$93 per unit. • Later, the Work Order Issue was backdated to March 28, 2025, which resulted in NetSuite creating the issue at a time when the stock was negative. • Because of this, NetSuite recalculated the average cost as negative, and applied that to the WO Issue, generating a massively inflated GL impact. • When additional stock was later received (via IR IR621), NetSuite automatically adjusted the stock, average cost, and GL impact retroactively. We are trying to understand: a. How NetSuite calculates such a high GL impact based on a negative average cost. b. What is the best way to fix this issue in the current records. c. How to prevent this from happening again (e.g., by blocking WO Issues that create negative stock). Could you explain how this GL impact of $113,909 was calculated, and what best practices you recommend in similar cases? Thanks in advance for your help.

AI generated answer (using internal Slack threads):

****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ****** a. The GL impact is calculated based on the average cost of the item at the time of the transaction. In your case, when the Work Order Issue was backdated, NetSuite recalculated the average cost as negative due to the negative stock. This negative average cost was then applied to the Work Order Issue, resulting in a high GL impact. b. To fix this issue, you might need to adjust the inventory and average cost of the item. You can do this by creating an Inventory Adjustment to increase the quantity and adjust the average cost of the item. Please note that this will also adjust the GL impact retroactively. c. To prevent this from happening again, you can enable the 'Prevent Negative Inventory' feature in NetSuite. This feature prevents transactions from being saved if they would result in a negative inventory for any item. However, please note that enabling this feature might affect your sales order and invoicing process, especially for kit package items which have inventory items as part of their components. Please also consider reviewing your inventory management processes to ensure that stock levels are accurately maintained and transactions are not backdated to a time when the stock was negative. Remember, it's always a good idea to consult with a NetSuite professional or your NetSuite administrator before making any major changes to your system or processes.