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Microsoft Dynamics AX (Archived)

Item consumption cannot be updated

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Posted on by Microsoft Employee

hi trans fer order i was getting this error can some one guide me.8838.Capture.PNG

Item consumption for 300.00 cannot be updated because the cost price is known only for -100.00 in stock.

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  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: Item consumption cannot be updated

    Hi,

    Thank you so much for your time in explaining the result. thank you..I hope its helps other as well..

  • Verified answer
    Guy Terry Profile Picture
    Guy Terry 28,684 Super User 2025 Season 1 on at
    RE: Item consumption cannot be updated

    Hi naik@123,

    How to explain what AX means by 'Financial inventory'.....

    If you use a Purchase order to receive some inventory, you often post the purchase order product receipt, followed by a purchase order invoice. Posting the product receipt is known as the physical update; posting the invoice is known as the financial update. Exactly the same is true when you issue some inventory to a sales order. The packing slip is the physical update, and the invoice is the financial update. Other functionality (such as Production orders and Transfer orders) supports the same concept.

    If you do not enable financial negative inventory (by ticking the tick-box on the Item Model Group), you are saying AX is not allowed to make more financially updated issues than you have financially updated receipts.

    In the Purchase order / Sales order scenario, imagine you physically receive an item on a purchase order (but do not post the purchase order invoice). You then issue this item to a sales order by posting the packing slip. You cannot post the sales order invoice unless you either:

    • Enable Financial negative inventory or
    • Post the purchase order invoice

    I have never seen an implementation of AX where Financial Negative Inventory was un-ticked. One reason I can think why you might not want to tick it is that financially updated receipts have the most accurate cost price that they are likely to get. By not allowing AX to financially update an issue transaction when there are not enough financially updated receipt transactions, you are ensuring that all of your issues are made with the most accurate costs that you can have. I believe this is why AX uses the words 'cost price is not known' in the error message that you see.

  • Verified answer
    André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 292,162 Super User 2025 Season 1 on at
    RE: Item consumption cannot be updated

    Usually you will not allow to have PHYSICAL negative inventory. I assume this is also not enabled, so probably OK. This setting will ensure that there is really no negative quantities as on-hand.

    The FINANCIAL negative inventory can occur in some cases. If you have e.g. FIFO, Average AX will work with average cost prices until you run an inventory recalculation or closing. When on the Item model the option Include physical value is not enabled, there may be received transactions without a costprice (temporary). Then sales will use the average cost price and this could lead to a temporary negative value. There are some other cases where financially it will be below zero. After receiving the purchase invoice and/or recalculation/closing inventory it should correct the real cost values.

    I would suggest to first try some postings and the change of settings on a separate TEST environment. Then you can see what actually happens and get your confirmation if the results would be correct or not.

  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: ax 2009 transfer order..problem

    Hi calavon,

    yes  the financial inventory was not enabled .. but  i a worried there might be any changes in balances or other things .. can explain the areas if it will be effected..pls

    thank you

  • André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 292,162 Super User 2025 Season 1 on at
    RE: ax 2009 transfer order..problem

    Hi,

    Can you tell which inventory model parameters are set? Do you allow for negative physical and/or financial inventory? When the financial inventory is not enabled, you could sometimes expect this error.

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