Inventory Recalculation

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Posted on by lally

Hi All ,

As per MS manuals and online blogs says that both inventory recalculation and close process is same ,there is no major difference .I might be wrong to understand the concept.

Could any pioneer explain the key difference between these close ?

In the both forms , Specification field has 3 options - Total ,Item group and Item to post the inventory settlement entries . Could i know what is the recommended option to be used in the production environment or real world client implementations ?

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feelyd 260 on at

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From what I know

Calculation just performs the calculation between moving average and your choose of inventory models e.g fifo

So it just calculates the difference

Closing will do the calculation but it will also post the values for inventory to you general ledger

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guk1964 10,888 on at

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Just search this forum- I and many others have answered the question several times.

Any manual or blog that says they are the same is misinformed.

A key difference is that recalculation does not settle transactions - so each time it runs it will take longer and longer till you run inventory close.

It helps to get a better running average cost and should be run prior to closing, but those costs may not be the same as the final settlement with inventory close.

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Ludwig Reinhard Microsoft Employee on at

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Hi,

Please have a look at the following MS Docs site, which gives you an overview of the differences.

docs.microsoft.com/.../about-inventory-close

Best regards,

Ludwig

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OsmanIstanbul 2,818 on at

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Hello lally

You can look at below link.

community.dynamics.com/.../173252

In addition, if you use average cost model and do not close inventory every period, your average cost will be same until you close inventory. This will cause to lose influence of cost variations.

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OsmanIstanbul 2,818 on at

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Hello Declan

To the best of my knowledge, both calculation and closing post or dont post to general ledger. There isn't a difference on posting, at least in my system.

Best regards

Osman.

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Ludwig Reinhard Microsoft Employee on at

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Hi Declan,

A revaluation will also create vouchers that are posted to the general ledger.

GL vouchers are not limited to inventory closings.

Best regards,

Ludwig

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Guy Terry 28,924 Moderator on at

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Hi lally,

Do you have a link to the manual/blog which says there is no major difference between Inventory recalculation and Inventory Closing?

I think magic1949 has explained the key difference; that Recalculation does not 'settle' Issue transactions to Receipt transactions like Close does. It means that the cost price which an issue transaction is given by Recalculation may change when Close is run (or when Recalculation is run again). Recalculation also does not block the period for inventory transactions, like Close does.

Both Recalculation and Close will post to the General Ledger. In part, the Specification parameter determines how it will do that (the Posting profiles / Item groups of your items also have a bearing). If you select Total (and if all your items share the same G/L accounts), AX will post one general ledger entry for all items. If you select Item group, AX will post one general ledger entry for each Item group. If your items do not all share the same G/L accounts, then you will also get more G/L entries for each account. Personally, I would use the Total option, because I do not see users studying the G/L postings that Inventory close will make. But I am not a finance consultant. Perhaps it would be best to review the options with a finance user.

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