To distribute items with negative inventory quantity, perform the following:
- Enter inventory adjustment quantity more than the negative value before the distribution date. 
- Where, Item A displays -10, navigate to Transactions > Inventory > Inventory Adjustment
 - Date = 9/24/09 (Date prior to Inventory Distribution date)
 - Item = Item A
 - Adjust Qty. By = 11
 
 - Distribute Inventory. 
- Navigate to Transactions > Inventory > Distribute Inventory > Simple or Manual
 - Date = 9/25/09
 - Select the appropriate Location.
 
 - Enter Inventory Adjustment to correctly display the quantity on hand. 
- Navigate to Transactions > Inventory > Inventory Adjustment
 - Date = 9/26/09
 - Item = Item A
 - Adjust Qty. By = -1
 
 
Quantity on hand now shows zero.
The above scenario is in consideration that quantity on hand is zero. Users may enter another inventory adjustment to display desired/correct quantity on hand on a date after the Inventory Distribution.
Note: Users may attach their case to Enhancement 44329: Distribute items with negative inventory quantity.
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