direct settlement vs summarized settlement

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Where is the setting that determines the inventory closing settlement method using direct settlement or summarized settlement?

Thanks,

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Ludwig Reinhard Microsoft Employee on at

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Hi,

Do you refer to the settlement of open invoices at the time you record customer/vendor payments in a payment journal or to the bank reconciliation functionality?

Can you describe in more detail - ideally supported by an example what you mean by direct vs. summarized settlement?

Many thanks,

Ludwig

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Community Member on at

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I was referring to the inventory closing calculation method. Our inventory uses a weighted average with "include the physical value" in the item model group setup. At the month-end inventory close, the system generates recalculation. According to the inventory documentation, there are two types of closing calculation: direct settlement and summarized settlement. I am wondering where the setting is, so I can confirm which method is being used for our inventory. Our company is considering changing from the weighted average to a standard costing method. Thanks.

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qianwang 7,168 on at

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Hi jfkbc,

System will analyze the inventory transactions for previous and current periods and determine which closing principles should be used. They can be divided into five different configurations.

In weighted average direct settlement example, the item model group is marked to include physical value. And in weighted average summarized settlement example, the inventory model is marked to include physical value.

Please refer to this official document.

docs.microsoft.com/.../about-weighted-average-with-physical-value-and-marking

regards,

QianQW

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Community Member on at

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Thank you! The system determines which closing principles should be used. What a smart system! I will post another inventory question.

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qianwang 7,168 on at

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Hi kfkbc,

If this post is useful for you, please verfy this answer to close this thread.

Thank you very much!

Rggards,

QianQW

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