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Microsoft Dynamics AX (Archived)

item avg price increased

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Posted on by 347

Dear All,

we have one issue.

x item as of march 31st inventory closing  qty :850,486  amount : 3,727,632.23 avg price : 4.38

X item consumption posted in April  qty : 709,943  Amount : 2,716,591.81    avg price :  3.82  why it took 3.82 it should be 4.38

at the time of posting it took 4.38 only but in April closing it settle with 3.82  .

So after closing April qty: 140,543  amount : 1,011,040.42  avg  price : 7.21  showing.

why it was settle like this even did not receive any qty in April.

Item model group : FIFO  Closing method : Weighted avg

please help us to solve this.

Thanks

Ashok

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  • Verified answer
    M Westwood Profile Picture
    485 on at

    Hi Ashok,

    During April, your consumption transactions take the avg. price which you had after the close of March.

    However, when you close April it will match your consumption transactions against your receipt transactions, NOT your avg. price at the last inventory close.

    For instance:

    Transaction Date Quantity Unit Cost Cost Running Avg. Adjustment Corrected Cost
    Purchase 1st March 1 10 10 10
    Purchase 2nd March 1 20 20 15
    Purchase 3rd March 2 30 60 22.5
    Sale 5th March -1 22.5 22.5 22.5 -12.5 10 Note: Matched off against Purchase on 1st March
    Close On hand 1st April 3 26.67 80.01 26.67
    Sale 5th April -1 26.67 26.67 26.67 -6.67 20 Note: Matched off against Purchase on 2nd March
    Close On hand 1st March 2 30 60 30

    In the above example, the sale during the month of April is showing at the average price. However during April's close, it is matched off against a receipt made in March.

    The outcome is a different running average at the end of April.

    Regards,

    Matt

  • ASHOK.MBA18 Profile Picture
    347 on at

    Hi Matthew westwood,

    Thanks for detailed explaination.

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