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I hope I ask this in a way that it makes sense to someone. I'm new to AX and I'm not entirely sure how costing works.
Is there a way for items that have no standard cost setup to be received in with the actual cost from the PO value?
Specifically the issue is that there is no visibility of cost for items without a standard cost until they are invoiced which is causing problems with accruals.
The users are telling me that this has come up before and they think this was determined to be an issue with AX4.0, but they are not entirely sure so they have asked me to look into it.
Any help is appreciated.
Hi, Do you mean posting the item costs at the time the packing slip is posted? This is a standard feature. If you have the AP parameter for posting packing slips in ledger activated you can already see your item costs in your inventory accounts before posting the invoice. Once you post the PO invoice the packing slip posting is reversed. This process is independent of using standard costs or another inventory valuation method. Hope it helps, Ludwig
Only items that are setup with a standard cost will post item cost at the time the packing slip is posted. They want the items that don't have standard cost to pull the cost from the PO.
Hi Rep_CM, AX is posting the current (running) cost of an item once you post the packing slip of a purchase order. This has nothing to do wth the standard cost inventory model/evaluation principle. The only prerequisite is that the "post product receipt in ledger" AP parameter is activated and that your item model groups are setup in a way to post physical inventory transactions. Maybe just have a look at one of the Microsoft Contoso demo environments where this setup can be found and compared. All the best, Ludwig
Ludwig, thank you for responding but I don't think you are understanding me. For items that have cost it is working correctly. I am talking about items that are not setup with a cost. Like a Misc Office Supplies...there is not a cost setup because every purchase is something different but they lump it all to this Misc item. User wants the financial cost to come from the PO actual cost.
I don't know how to look at Microsoft Contoso demo. Where is that?
How do I do this..."The only prerequisite is that the "post product receipt in ledger" AP parameter is activated and that your item model groups are setup in a way to post physical inventory transactions."
Why are your misc items standard costed would be my point - make them FIFO and it will work for you. AX will not post the standard cost of an item from the purchase order value if the specified standard cost against the item or costing version (depends upon your version of AX) is 0.00. In those instances you cannot cost it because it is a item covering multiple items, but you then want the item functionality. Either make them real items, or change the costing method for those items is the advice I would give (or live with the time delay receipt-invoice which should be short if they are service like items and of course of low value!)
Steven. The version is 4.0. Could it be that in 4.0 won't allow what they want to do? They have been living with the time delay, but apparently in some cases it takes up to 2 weeks for the invoicing to happen.
How do I make them FIFO? I'm new to AX and do not know where anything is, and I don't have access to Customer Source in order to get any training on it.
You would need to create a new item model group for FIFO and then create new items and assign the item model group - unless in 4.0 you can alter it and then deal with the change (but I doubt it). It is also a serious question to ask your financial people - do they really want these items to be FIFO - whilst solving the receipt - invoice time delay and the costing it means they are not standard costing and there are no variances (difficult anyway if you use one item for multiple uses). The other answer is to put an "average" into the cost of the item rather than nothing and live with the variance post invoice.
I suggest even after agreement you test it before moving any change into live!
Found the item model groups and they all are set to FIFO. Some have Standard cost price checked and some don't.
None of the groups have Include physical value checked. Is this what needs to be checked in order to have it bring in the PO value when the cost is $0?
It has been a long time since 4.0 can you show a screen shot of the FIFO and Standard?
Even if you set it to FIFO you will still have the same issue - the system will not take the "purchase price" it will take the current cost, so on the initial setup and the cost is 0 AX would still post zero. However after that with FIFO it would post an average cost. Which means if the misc items in the group have varying costs it will not help anyway.
It is the grouping of the product that is really your issue and the requirement to capture a cost from the PO for items you do not want to control as items. FIFO gives you an option that is not standard, but it does not really give you what you want. What you want AX does not do as standard.
this is the Service group.
From what I understand from what users telling me, even with it set to FIFO, there is not average cost getting posted when the packing slip gets entered.
Would it be possible to do this in 2012? or is it what they are asking just not possible at all?
What does that "Include physical value" flag do?
I found a document that says the following...
"Physically updated items are included in the calculation of the average cost price.
The following formula is used: Avg. cost price = (financial value + physical value) / (financial quantity + physical quantity)"
which leads me to think if it was checked it would pull in the value they want, but then again I don't know what this means exactly.
You need to de-select the Standard Cost Price field (In later versions this is in the inventory model drop down). I think in 4.0 it overwrote the inventory model selection. The include physical value is indeed what you read - it updates the cost with relation to the average cost, which is updated when you receive depending upon your settings (update cost flag on the item). Your issue will be is the costs of the generic item vary, so you buy items for $1 and $100 for the same generic code, your average is meaningless as are the postings until the invoice comes in.
Thank you Steven. I will pass the info along to the users so they can decide what they want to do.
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