Hi All ,
Assume that client uses Standard costing inventory model in AX 2012 R3 and D365 . Do we need to run the inventory closing process periodically same as for other costing methods ?
Thanks in advance.
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1. You might have some items that are not standard, in which case inventory close is needed. Even if that is not the case now then you may add some at future date. If you don't close the inventory financial periods periodically, then when you come to do a first close Ax will need to go back to the start to close each inventory period.
2. We should also differentiate between the former standard cost model now called fix price receipt which is still an option, and the current standard cost model introduced at Ax 2009
3. After every financial inventory operation, the inventory on-hand value is checked for validity (i.e. that invent on-hand value is equal to the on-hand quantity multiplied by an active standard cost). If this is not the case, e.g. due to some rounding difference, then the system proceeds with an automatic invent on-hand value adjustment. This adjustment is not spread across all open inventory transactions as usual, but is linked to the last updated transaction.
4. As far as I recall, at the end of the inventory closing procedure run, the system fills the inventCostTransSum table with summarized values from the inventCostTrans table up to an inventory closing date. Data from this table helps to speed-up a standard cost, change- value procedure, and also to lower the time required to build some standard cost related reports. So for inventory that has not been closed for a long period, performance of these procedures can potentially deteriorate considerably. That was certainly the case in Ax 2009 and I am not aware that it has changed in Ax 2012 - I wlecoem any update.
[quote user="magic1949"]Its a greyv erea with conflicting advice. I vaguely recall some cases to do with return orders where this might be needed,[/quote]
Could you explain more about above statement and your experience to run the inventory closing for standard cost ?
Its a greyv erea with conflicting advice. I vaguely recall some cases to do with return orders where this might be needed, and I am pretty sure the Inventory close sets flags on inventory transactions and on-hand (InventSum) records that close records - which is relevant also for standard costing. So I agree, run inventory close even for standard -it should not take long.
Hello lally,
The technical answer to this question is NO.
However, best practice and MS recommendation is to run the inventory closing process nevertheless.
Best regards,
Ludwig
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