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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / Transfer order item co...
Finance | Project Operations, Human Resources, ...
Suggested Answer

Transfer order item cost is higher than item cost

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Posted on by Peter White 60

Dear 

i had an issue with an item cost so i ran inventory recalculation, i was examining the results on the item cost (which was 1.08) and everything seemed fine until i found that i have 2 transfer order had cost at 1.48  , 

why would a transfer order have this cost , given that there are no extra charges on these transfers (we never add charges on transfers)

how can i know why this is happening?

regards

I have the same question (0)
  • MATTGUO Profile Picture
    MATTGUO 22,349 Moderator on at

    Hi Peter,

    What cost model is the item?

    What are the setup of item model groups and storage dimension group?

    Could you please share the transactions of the item?

  • Suggested answer
    saurabh bharti Profile Picture
    saurabh bharti 15,045 Moderator on at

    Hi Peter,

    What inventory valuation method you are using?

    Also, if in your storage dimension "Physical and financial " inventory is ticked then system will take the cost from "Site+warehouse" combination which can be different from over all cost .

    Just check if in you from warehouse of transfer order you had any inventory inward with higher value which impacted the cost.

  • Abdo Khoury Profile Picture
    Abdo Khoury 14,855 on at

    My cost model is Weighted avg.

    as for the Item Model Group Setup

    4718.Item-Model-Group.png

    and in regard to the Storage Dimension Group

    Storage-Dimension-Group.png

  • André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 303,674 Super User 2026 Season 1 on at

    Hi Peter,

    It would be hard to find out if really all transactions do have 1.08 and only these two 1.48. Was the transfer within the site or cross sites?

    Your settings for weighted average are correct. Include physical value is enabled and you are not allowing for physical negative inventory.

    How many transactions do you have on this item?

  • MATTGUO Profile Picture
    MATTGUO 22,349 Moderator on at

    Hi,

    Please check the cost at site level.

    And please share transactions of the item.

    Do all transcations have financial date?

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