In Katana, it is possible to have negative stock levels for your products and materials. Even though it is allowed, we recommend avoiding negative stock.

When you use ingredients in manufacturing or sell items that don't exist in stock, Katana is unable to calculate the costs correctly and you will end up with incorrect Average costs for items and incorrect profit margins for Sales orders.

Katana gives you visual status alerts when some ingredients are not available for manufacturing or sales items available for sales orders. You should not complete a Sales order or a Manufacturing order when either the sales items or ingredients availability shows Not available.

Learn how to avoid negative stock in this video: