In my opinion is allowing negative stock a bad decision and this should only be done in very very exceptional processes.
I use auto creation of storage location segments in many plants (and we have more than 700), but this is usually limited to receipts, where I create positive stock in location, which is for us the logical first step before we can post a goods issue.
The more the design is matching with the real world sequence of steps the easier it is for the endusers to understand the design and to follow the designed processes. Most of them would giggle about this big hole in the warehouse floor where all this negative stock is stored.