Sales Order

I have just tried to generate a sales order of an item that has no stock in the system shouldnt it block?

Similarly when an invoice is generated once a sale is done, does the inventory reduce automatically by the item you have sold?

No, its only an order not a delivery, perhaps a purchase order for the item may have been raised. Also, Order don’t create any accounting transaction.

Yes, if there is stock on hand, but if there is no stock - a back order is created

Why it should? The system is not a police. It’s an accounting system. You input whatever is happening in your business and system will give you figures.

In this particular case, it’s common for many companies to sell items they don’t have on hand. That doesn’t mean system should stop you from making a sale as you can make a sale and then purchase item for customer from your supplier.

Or item you are selling has to be produced from raw materials. So you make a sale, then you produce it.

But even if you have an item physically in stock, maybe the system doesn’t know that because you haven’t entered all your purchases yet. It would be very annoying if the system would start fighting with you like: “No, you can’t make that sale!”

Not to mention, as I said in examples above, for many businesses, it’s typical to sell items they don’t have on hand before sale.

Makes sense. Reason for my question is SAP blocks so I thought maybe it’s a feature. But I understand your explanation.