Quantities in Secondary UOM go Negative even though 'Allow Negative Balances' is Unchecked (Doc ID 1175164.1)

Symptoms

On :  12.0.6 version, Onhand and Availability

Find that the Secondary On-hand quantity can go Negative for a Lot Divisible Item even if the Organization set to not 'Allow Negative Balances'.


EXPECTED BEHAVIOR
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Expect that when an Org is set to not 'Allow Negative Balances', transactions should not allow the Secondary on-hand qtys to go negative.


STEPS
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The issue can be reproduced at will with the following steps:

(1) Go to Inventory responsibility:

(i) Setup > Organization > Parameters>
- make sure that the 'Allow Negative Balances' checkbox is Unchecked.

(ii) Have an Item with Item Attributes as

- Lot Control = Full Control
- 'Lot Divisible' - checked.

(2) Do a Miscellaneous Transaction for a Lot Divisible Item allowing the quantity in the Secondary UOM to go Negative.


BUSINESS IMPACT
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The issue has the following business impact:
Due to this issue, On-hand quantities will be incorrect.

Cause

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