Inventory Adjustment and Closing costing issue

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Posted on by usman.malik

Hello, I am facing certain issues in costing and they are not adjusting after Recalculation, please tell the reason.

1) I am using Average costing method in a AX, In Transfer Orders we are shipping and receiving on different dates, so shipping cost differs from receiving cost because of average model. Now i am trying to do settlements through recalculation but system is not adjusting these kind of transfer,ignoring, Moreover these transactions are non financial transfers and Value Open is yes.

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Ludwig Reinhard Microsoft Employee on at

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Hi usman malik,

Are you using the moving average costing model?

If so, the inventory recalculations / closing won't adjust those differences won't be corrected.

Best regards,

Ludwig

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usman.malik 40 on at

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Dear Ludwig i am having this issue in Weighted Average..

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Ludwig Reinhard Microsoft Employee on at

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Hi,

Are the transactions marked against each other?

If so, they won't be picked up by the inventory closing and recalculation process.

Best regards,

Ludwig

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usman.malik 40 on at

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I checked for one Transfer Order and for one item, there is no Marking,

I am checking this from TO Line -> inventory Button -> Marking.

when i go to that items transaction, i found two shipping lines(Shipping WareHouse + Transit) Value open: Yes, Non Financial Transfer: unchecked

For two Receiving lines(Receiving WareHouse + Transit) of the item Value open: No, Non Financial Transfer: checked.

Why this is not coming same ?.Thanks.

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Ludwig Reinhard Microsoft Employee on at

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Hi usman malik,

This sounds interesting. Can you share an example how such a cost difference arises / looks like? It would be great if you could attach some screenprints.

Many thanks and best regards,

Ludwig

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Guy Terry 28,924 Moderator on at

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Hi Usman,

On the Storage dimension group, do you have 'Financial inventory' ticked on both the Site and Warehouse lines?

Are these Transfer orders between different Warehouses on the same Site, or between different Sites?

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usman.malik 40 on at

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Hi Ludwig,

Here is the screen shot below.

I found one more thing, for above two lines there is weighted average principle settlement(after price adjustment), but for below two lines system didn't make this settlement, how to adjust that difference, Thanks.

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usman.malik 40 on at

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Hi Terry,

We are tracking Financially only Site wise, not warehouse wise,and these transfer are for different sites,Thanks.

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Guy Terry 28,924 Moderator on at

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Hi,

There is a white paper here which explains about 'non-financial transfers'.

blogs.msdn.microsoft.com/.../back-ported-features-from-dynamics-ax-2012-to-dynamics-ax-2009-close-non-financial-transfers-inventory-reconciliation-and-reporting

My understanding is that the two transactions which are non-financial transfers are ignored by the inventory close/recalculation process because they have no effect on financial inventory.

From the point of view of your financial inventory, the inventory was issued from S50 with a cost of 1,858.43, and received into S03 with the same cost (first two transactions).

When the transfer from Warehouse TRS03 -> KOB003 was made, the item had a running average cost (in the S03 site) of 924.44. Because this transfer was within a single site, Inventory close has not bothered to recalculate this cost according to the principles of the Weighted average costing method because, well, there is no need to.

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