Costing logic of FIFO

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Posted on by Jack Nguyen

Dear All,

I'm facing a problem with costing and i don't understand logic of system here. Please review my scenario as below:

Item A's Transactions

1. Report as finish Production Order at 7/31/2019 - Quantity = 1 - Physical amount = 0

2. Create SO and deduct item A through packing slip at 7/31/2019 - Quantity = -1 , Physical amount = 0

3. Invoice SO at 8/2/2019 - Financial amount = 0 due to production order was not ended

4. End production order at 7/31/2019 => Financial amount updated = 5000 $

5. Run recalculation at the end of July (7/31/2019) => SO update adjustment amount = -5000$ => I tried to run recalculation one more time => system continue to update adjustment for this SO = -5000$. I checked that if i run recalculation , system will update amount again and again.

6. I run calculation at 8/31/2019, now system will revert duplicated adjustment in last month.

My costing method is FIFO

I don't understand why system doesn't update physical value (packing slip date) in July and update financial value/adjustment in Aug ( invoice date)

Many thanks

Jack

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Zain Mehmood 4,187 Most Valuable Professional on at

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Hi Jack,

Have you enabled include physical value check box in the item model group settings?

Btw i am also curious that why didn't the physical update of the production order didn't result in any value. It should have shown value.

If you enable it now, the next time whenever you will post recalculations system will also add the physical values for your adjustments.

Please mark YES against the answer that helps you. Thanks.

Warm Regards,
Zain

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Jack Nguyen 91 on at

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Hi Zain,

Thanks for your answer.

I already check include physical value check box in the item model group settings in my scenario

Even production order have physical value , the result is same. System update adjustment and add more value into ledger again and again if i run recalculation at 7/31/2019.

Best regards

Jack Nguyen

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Ludwig Reinhard Microsoft Employee on at

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Hello Jack,

In July you only have physical postings.

The financial posting is made with the sales order invoice posting in August.

Does that answer your question?

Best regards,

Ludwig

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Zain Mehmood 4,187 Most Valuable Professional on at

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Hello Jack,

Was there any on-hand inventory for this? Can you put screen prints of the transactions in order to help ? Thanks

Zain

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Jack Nguyen 91 on at

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Hi Mr. Ludwig and Mr. Zain

In July, I have financial posting (receipt - end production order) and physical posting (issue - packing slip SO)

There are two points which I can't understand.

+ When I run recalculation up to 7/31/2019 => System update adjust amount into financial amount instead of update into physical amount of Sales order

+ When I run recalculation up to 7/31/2019 again and again => System update adjust amount again and again

I also capture the inventory transaction and FIFO Costing method configuration here

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André Arnaud de Cal... 301,025 Super User 2025 Season 2 on at

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Hi Jack,

What exact report did you use here? Can you check the settlement transactions for this item? Did you run the recalculation daily with the same end date (7/31/2019) which is at time of running a future date?

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Jack Nguyen 91 on at

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Hi Mr.Andre

Thanks for your reply

I use standard report - inventory value report.

I just run recalculation therefore I think i can't check settlement transaction ( please correct if I was wrong).

I tried to run recalculation many times at same end date (7/31/2019) to check system will update again or not. Data was recorded into system up to Aug, so I think 7/31/2019 is not future date?

Many Thanks

Jack

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Jack Nguyen 91 on at

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Hi all,

I also tried this scenario with different item and different AX environment . The results are same therefore I guess this is standard behavior of system or bug.

If there is a bug, I hope we have a hotfix

Many thanks

Jack

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Ludwig Reinhard Microsoft Employee on at

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Hi Jack,

You should not get multiple times the same adjustment posted without the previous one being reversed by the system.

Have you already checked LCS for available hotfixes?

Do you know if somebody made changes to the setup/code?

Best regards,

Ludwig

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Zain Mehmood 4,187 Most Valuable Professional on at

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Hi Jack,

Can you post the same transactions from Inventory Transaction inquiry located in the Inventory Management Module. Please add the Financial Date, Physical date, Physical Voucher & Financial Voucher in that inquiry in order to understand much better.

That will have a separate column for adjustments.

Thanks.

Regards,

Zain

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