If you use the LIFO or FIFO valuation method for any of your inventory items, it is possible to overdistribute a cost tier so that the quantity on hand becomes a negative number.
Any time more units are sold than are currently in stock (you accept a quantity entered during Sales Order processing or Transaction Entry that is larger than the quantity on hand), a special cost tier with a reference of Overdist is created for the negative quantity amount. The last cost for the item is used as the unit cost. This condition is usually encountered when a sale is processed before a receipt is recorded. After a receipt for additional units of the item is recorded, the Overdist tier will be deleted during Period End Processing.
