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Dear
i am setting up inventory to work as periodic inventory , so i don't want any COGS accounting entry when doing a sales transaction ?
how can i do that?
Regards
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This mean you need to set up all your items as "non inventoried" item (on the item model group) - all purchases are going to go into a single account ("purchasing expenditure"), and sales order will not trigger any COGS.
At end of year you'll need
Open Inventory + Total purchases (as in that account) - Close Inventory = your COGS for the year.
Hi Silvano,
I would recommend not using this kind of accounting approach because at the end of the day you can't directly analyze whether you made a profit or loss for a specific SO.
I know that a lot of companies especially like this 'nature-of-expense' accounting but that is literally a step back and I would never implement something like this.
The COGS posting represent a fraction of the monthly inventory adjustment posting that you have to do and switching this feature off by changing the item model group settings causes a lot of additional work and requires manual month-end adjustment postings.
Please talk to your accountants and explain them the postings that AX is doing and the additional work they have if they do not create this COGS posting. I can only see disadvantages not posting the COGS at the time you create the invoice.
Best regards,
Ludwig
Periodic inventory account can be a good idea when your sales system is not tightly integrated with Dynamics (as with some retail organizations), and sales information is recorded just periodically.
In such cases it is not practical to run each and every sales transaction through Dynamics to trigger the sales/COGS mechanism and not practical to do inventory close/etc. as it is tons of overhead effort.
WAs your question answered? if so please mark the thread as closed.
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