Microsoft Dynamics AX (Archived)

Service item posting

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I have a service item whose item groups is configured as "weighted average", and "Stocked product" is checked.

i found the physical/financial posting is quite different from product item. (Purchase price 5, sales price 8)

First of all, it has no sales packing slip posting.

Second, the posting account is quite different from the traditional item.

The "Purchase, inventory receipt" is debited in the sales invoice, but is wasn't credited in the sales process. I cannot understand why the system do it like this .

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Chandu Naresh 982 on at

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Hi Janrui,

for a service item, there will be no physical inventory (No inventory on Hand)

If in the item model groups' Inventory Policy (stocked check box). if you have ticked the stocked product check box to "Yes", although no physical inventory is maintained, the purchases will not be expensed at the time of purchase.

If you want the purchase to be expensed on purchase, then you need to uncheck "Stocked Product". This should solve your problem

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Daxer Persson 3,005 on at

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Some questions from me:

What do you mean by "I have a service item" ? Please in terms of AX settings.

How is the PO and SO above linked ? By reference or is issue for SO taken from stock?

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Community Member on at

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[quote user="Daxer Persson"]

Some questions from me:

What do you mean by "I have a service item" ? Please in terms of AX settings.

How is the PO and SO above linked ? By reference or is issue for SO taken from stock?

[/quote]

Hi Daxer

service item means one item with the item type configured as "Service", PO and SO are not linked, PO buy the item, SO sold the item from stock.

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Community Member on at

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[quote user="Chandu Naresh"]

Hi Janrui,

for a service item, there will be no physical inventory (No inventory on Hand)

If in the item model groups' Inventory Policy (stocked check box). if you have ticked the stocked product check box to "Yes", although no physical inventory is maintained, the purchases will not be expensed at the time of purchase.

If you want the purchase to be expensed on purchase, then you need to uncheck "Stocked Product". This should solve your problem

[/quote]

Hi Chandu

the service item is part of the BOM, so i must check the "Stocked Product", otherwise it cannot be used as BOM component item.

Thanks.

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André Arnaud de Cal... 301,171 Super User 2025 Season 2 on at

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Hi Jianrui,

Why are you using a service item? What is the purpose for your scenarios?

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Community Member on at

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[quote user="André Arnaud de Calavon"]

Hi Jianrui,

Why are you using a service item? What is the purpose for your scenarios?

[/quote]

Hi Andure

The reason that i use the service item is because i have subcontract working, so the finished item is consisted of one raw material and one service item.

When i have to send the material to the vendor, i create a transfer order to transfer the material to the vendor's warehouse. i create a production order when the subcontract working is finished, and a purchase order will be created automatically when i estimate the production to buy the service item from the vendor. and the production order consume the raw material in the vendor's warehouse and the service item that i bought from vendor.

Probably it's too troublesome to use the service item to simulate the subcontract working.

Thanks

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André Arnaud de Cal... 301,171 Super User 2025 Season 2 on at

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Hi Jianrui,

The service items indeed are different compared to normal products as the services are consumed directly. But it is common to use a service item for subcontracting. I just wanted to be sure about your proces.

Have a look at the next blog on MSDN. This has some recommendations related to the setup of service items (also when they are part of the BOM).

blogs.msdn.com/.../service-products-in-dynamics-ax-2012.aspx

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GeorgeC 1,865 on at

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Using service items for subcontracting makes sense and for me it has been working well in AX 2012. But why are you interested in the "sales packing slip posting"? As you said, a production order would consume service items from the appropriate warehouse. What's the business case for selling these service items directly to a customer on a sales order?

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Community Member on at

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[quote user="GeorgeC"]

Using service items for subcontracting makes sense and for me it has been working well in AX 2012. But why are you interested in the "sales packing slip posting"? As you said, a production order would consume service items from the appropriate warehouse. What's the business case for selling these service items directly to a customer on a sales order?

[/quote]

Hi George

The service item is part of the BOM, purchase order created automatically when we estimate the production order, and the purchase order will be used for invoice the vendor(buying the service from vendor).

the price of service item may change when we invoice the vendor, Since it has not inventory transactions, i think no variance will be posted.

So why service item was used in your business process, for what purpose ?

Thanks

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GeorgeC 1,865 on at

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Hi Jianrui Ding,

We use the service items in subcontracting the same way that you do. A service item may represent a real service, e.g. the labour required to do cutting, painting, assembly, etc.

Sometimes we also use a separate service item to represent a special component that we asked the vendor to buy from a third-party and assemble with our product. We do that to track the volume of these special components and their prices - because we negotiate the price with the third-party and allow the subcontractor to add margin for storage and handling of the component.

In our process we also create a production order, then estimate it and AX creates the subcontracting PO. We have created a modification so when we report the subcontracting operation (good qty, scrap qty, time spent, etc), AX automatically posts the proper product receipt on the PO and then consumes the service item(s) on the production order. This reporting is done either by subcontractors (some of them have access to our AX environment) or by our operators (after receiving e-mail from subcontractors).

When service items are set up as "stocked item", it means that AX will use inventory transactions. We use FIFO principle for these service items. But in case of subcontracting, the PO transaction and the production order BOM line transaction are marked against each other so proper cost is transferred from the PO to the correct production order.

I can't comment on the G/L postings when price in vendor invoice is different from price on PO - we have done huge modifications in that area. But we do use 3-way matching and block invoices with discrepancies in quatity received/invoiced or price quoted/invoiced.

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