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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Difference in price of...
Microsoft Dynamics AX (Archived)

Difference in price of Semi-Finished Good item which is used in Parent Finished Good item.

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Posted on by Muhammad Burhan Zahoor 145

My First semi Finished Good order, which have realize amount in below Fig.

 Semi-Finished-Good-Order_2D00_-1st-order.jpg

When above Semi-Finished Order used in Finished Good Order then its realize amount is not same as mentioned.

Finished-good-Order-_2D00_-2nd-Order.jpg

What will be the possible reason for this?

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  • Fredrik Sætre Profile Picture
    Fredrik Sætre 12,644 on at

    First off: I love it that you call upon Ludwig. He is the best. Good call.

    Now... You do have some work to do with your cost prices. You have some MAJOR discrepancies.

    You have a production order that is estimated to cost 170k for 285, but have posted 25k for 350? Something does not add up. Literally.

    The cost price you see on the finished goods is estimated and consumed in your production order is based off the cost price on the item and thus you get that sum.

    What type of costing method are you using? Standard cost or FIFO?

    If you use FIFO, this will be adjusted when doing inventory closing...

    The physical cost is an "estimation"  that rely on your item cost prices. Posting report as finished or doing purchase receipts are examples of when these are used.

    Ending a production order or posting invoice on a purchase order is the financial posting.

    If the cost price varies the inventory closing will adjust these and give the right cost price up the chain. Note that tracking dimensions like serial numbers and batch numbers can override the FIFO principles as well as marking two orders, like if you create a production directly from a sales order or use pegged production type instead of "item".

  • Muhammad Burhan Zahoor Profile Picture
    Muhammad Burhan Zahoor 145 on at

    Thanks Fredrik for reply and giving similar opinion about Ludwig

    Yes, The First production order PO-0000364  that is estimated to cost 170k for 285 qty, but actually have posted with 25k for 350 qty. In which all Raw Material have Weighted Average costing method and Semi-finished Good have Moving Average Method.

    In Second Production Order PO-0000363 which is linked through Pegged Supply with PO-0000364 and Produced through Sales Order, also have a costing method of Moving Average. When Semi finished Good cost is actually produced with 25K in PO-0000363 then how they consumed with 193K in PO-0000364. It's a huge difference!

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