T&L Guru's can you please explain why the ending value is 27.50 instead of 22.50....is it a typo ?
Weighted average with marking
Marking is a process in Microsoft Dynamics AX that allows you to link, or mark, an issue transaction to a receipt transaction. Marking can occur either before or after a transaction is posted. You can use marking when you want to be sure of the exact cost of the inventory when the transaction is posted or when the inventory close is performed. For example, your Customer Service department accepted a rush order from an important customer. Because this is a rush order, you will have to pay more for this item to accommodate your customer's request. You would like to be certain the cost of this inventory item is reflected in the margin, or cost of goods sold (COGS), for this sales order invoice.
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[WHITE PAPER TITLE - 8 PT VERDANA ALL CAPS]
When the purchase order is posted, the inventory is received at a cost of USD 120.00. If this sales order document is marked to the purchase order before the packing slip or invoice is posted, the COGS will be USD 120.00 instead of the current running average cost for the item. If the sales order packing slip or invoice is posted before the marking occurs, the COGS will be posted at the running average cost price. Before inventory close is performed, these two transactions can still be marked to each other. When a receipt transaction is marked to an issue transaction, the valuation method selected for the item's inventory model group will be disregarded and Microsoft Dynamics AX will settle these transactions to each other. To mark an issue transaction to a receipt before the transaction is posted, open the Sales order form, select a transaction line, and then click the Inventory button on the transaction line and select Marking. The Marking form will open and display all the open receipt transactions. You can then select one of these transactions to match to, or mark, this issue transaction. To mark an issue transaction to a receipt after the transaction has been posted, navigate to the inventory item on the Transactions on Item form and click the Transaction button. Select the issue transaction that you want to mark, and then click the Inventory button and select Marking. The Marking form will open and display all the open receipt transactions. You can then select one of these transactions to match to, or mark, this issue transaction. The following transactions are illustrated in the graphic below:
>1a. Inventory physical receipt for a quantity of 1 at a cost of USD 10.00 each.
>1b. Inventory financial receipt for a quantity of 1 at a cost of USD 10.00 each.
>2a. Inventory physical receipt for a quantity of 1 at a cost of USD 20.00 each.
>2b. Inventory financial receipt for a quantity of 1 at a cost of USD 20.00 each.
>3a. Inventory physical receipt for a quantity of 1 at a cost of USD 25.00 each.
>4a. Inventory physical receipt for a quantity of 1 at a cost of USD 30.00 each.
>4b. Inventory financial receipt for a quantity of 1 at a cost of USD 30.00 each.
>5a. Inventory physical issue for a quantity of 1 at a cost price USD 21.25 (running average of financial and physical updated transactions).
>5b. Inventory financial issue for a quantity of 1 is marked to the inventory receipt 2b before the transaction is posted. This transaction is posted with a cost price of USD 20.00.
> 6a. Inventory physical issue for a quantity of 1 at a cost price of USD 21.25 each.
> 7 Inventory close is performed. Since the financially updated transaction is marked to an existing receipt these transactions are settled to each other and no adjustment is made.
The new running average cost price reflects the average of the financially and physically updated transactions at USD 27.50.
