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Prevent items from being available in physical inventory until PO is invoiced

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Posted on by Arabic Translation ... 41
Hello Community,
I need assistance with managing inventory availability in D365 F&O.

Currently, when we receive a Purchase Order (PO), the available physical increases and items become available for sale immediately. However, additional costs such as delivery charges, loading/unloading labor, etc., can increase the item’s cost price by the time the PO is invoiced. This discrepancy means the inventory is available for sale without accounting for these additional costs.
I’m looking for a way to ensure that inventory is only available for sale once the PO is invoiced, reflecting the final cost price that includes these additional charges. Is there an out-of-the-box functionality in D365 F&O to achieve this, or can you suggest an alternative approach to manage this issue effectively?
Thank you for your help!
  • Suggested answer
    BillurSamdancioglu Profile Picture
    BillurSamdancioglu 15,811 Most Valuable Professional on at
    Prevent items from being available in physical inventory until PO is invoiced
    I advise not to go with a customiation while this is a very core functionality and use the standard calculations as Saurabh has told in cost calculations.
    You may alsı check Fast Track team videos for detailed cost calculations.
  • Suggested answer
    saurabh bharti Profile Picture
    saurabh bharti 15,029 Super User 2024 Season 2 on at
    Prevent items from being available in physical inventory until PO is invoiced
    Hi,
     
    I think issuing inventory at product receipt stage is not the issue if it is just about the final cost which gets posted during PO invoice.
     
    Can you please confirm your valuation method?
     
    but just to let you know the how system will work in this case.
     
    Step-1: PO is received with lets say 1 QTY with 10 USD 
     
    Step-2: You sales this and your COGS gets posted with 10 USD
     
     
    Step-3: Now you get PO invoice with value 15 (10 + 5 other charges)
     
    Step-4: In month end you can run inventory recalculation process which will adjust your COGS by 5 USD 
     
    All this will work for FIFO,LIFO, Weighted average .
     
    I have a series posted for inventory valuation , might hep you if you want to understand in detail.
     
     
     
     
  • Arabic Translation with item Profile Picture
    Arabic Translation ... 41 on at
    Prevent items from being available in physical inventory until PO is invoiced

    Could you please guide me on where exactly I can perform the customization? There are several processes involved in the insertion, so any specific directions or resources you can provide would be greatly appreciated.

  • Suggested answer
    Bharath jain Profile Picture
    Bharath jain 848 on at
    Prevent items from being available in physical inventory until PO is invoiced
    Hi,
     
    If you’re worried about calculations, they are taken care of. Although the item is sold, after posting the PO invoice, the system will adjust the additional charges. However, if you want to know the final price before creating the sales order (restricting the item from being available for sale before the PO invoice), you may need to consider customization
     
    Regards,
    Bharath Jain
  • André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 291,642 Super User 2024 Season 2 on at
    Prevent items from being available in physical inventory until PO is invoiced
    Hi Arabic Translation,

    Can you tell us what inventory costing type you are using for these items? In case you are using an actual method, like FIFO, LIFO, the inventory closing and adjustment feature will post corrections in case the financial cost of a purchase is different. In that case, the final cost will be recalculated anyway.
  • Mohamed Amine Mahmoudi Profile Picture
    Mohamed Amine Mahmoudi 10,169 Super User 2024 Season 2 on at
    Prevent items from being available in physical inventory until PO is invoiced
    Moved to finance form

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