At this point the alternator is not spinning, (engine off, right?) so you'll see no current indicated. Check your meter AGAIN and make sure it is really set up to measure AC current less than 100 volts.
Now fire up the bike and let it idle. You should see somewhere around 20 volts, more or less; the exact amount's not important.
Roll the throttle on slowly up to about 3000 rpm. The meter should follow, giving you approximately 20 volts per 1000 rpm. The exact amount is not so important; you just want to see the numbers get reliably bigger at about that rate. It should top out somewhere around 60 to 75 volts.
If that's what you get, turn the motor off; your alternator is good, and the problem is with your voltage regulator. Before you toss it, make sure it is well grounded, that the bolts are tight; that there are star washers under the bolt head and nuts, and that there's no paint in the way. If all that's correct, then toss it; it's a non-repairable item. Buy a new one and install it, then check the battery with the motor running for 13.5 volts. If you have it, good. If not, swear hard and set about doing some complicated checking which I won't go into here.
If the alternator does NOT put out, then it's bad. Check to see why, not that it really matters, but it just makes you sound smart when you go into buy a new one and say "Got a shorted stator" or whatever to the parts guy, 'cause that's probably what you are going to have to do.
ENGINE OFF NOW. Disconnect the battery ground cable from the battery.
What you are gonna do now is check to see if one of the windings in the alternator is broken, or if something external to it has grounded it out. You'll do that by sending an electron from your meter into one of the holes. Since all those windings on the stator are really just one long wire, with an end in each hole in the plug, it should come right back out through the other one and be "seen" by the meter. If it doesn't come out, the wire's broken or grounded internally.
Switch your meter to the lowest OHMS setting. Take your two cables and touch 'em together; watch what the meter does. It should indicate zero resistance, for there's nothing in the way.
Now put one pin into each of the small holes, like you did for the last test. You should get a reading that is essentially zero, no resistance - that means that electrons from the red wire of your meter are flowing through the one long wire that is wound hundreds of times in the stator and coming back to your meter through the black cable. The alternator's winding is intact.
If it shows any resistance your wiring is broken or shorted internally.
Now the final stator check.
Pull the black cable out of its hole and touch the probe to the engine case. Your needle should show infinite resistance - there should be no current flow from the windings (where you are putting current from the meter, through the red wire) into the case (where you may it up again with the black probe). If you get a reading at all there is a current flow of some sort, and that means that your stator is shorted - something is touching both the windings and the case, and it should not be that way.
Any stator problem usually requires replacement, and that means pull the outer primary case, primary drive (clutch, chain, and compensator sprocket), and alternator rotor. It's really not a complicated job if you have book and it's a good one to learn on.
Now, a caution.
There are other, more complicated problems that can arise and also drive you crazy. This explanation has been pure "bonehead" electrics, nothing complicated. If you can't straighten things out with this diagnosis, you got a big job ahead. It took me a year of starter problems, for instance, to discover that my problem was due to a brand-new starter that had its armature machined a few thousandths too long, so it was binding up as it heated from use. No way can I cover all of those possibilities here.
Pilgrim
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