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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / One material for multi...
Microsoft Dynamics AX (Archived)

One material for multiple purpose

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Posted on by Community Member

Hi

Recently i met a special requirement like this. One material that can be used as raw material for producing other product. and it also can be sold as finished product directly.

Note: main account for raw material is 1401, main account for finished product is 1402

A: If this material is used for production. normally the process will be like this:

1. Debit Raw material(1401) , Credit account payable. (purchase)

2. Credit Raw material(1401), Debit production cost ( production)

B: if this material is used for sales. normally the process will be like this:

1. Debit the product(1402), credit Account payable.(purchase)

2. Credit the product(1402), Debit Account Receivable(sales)

Now the problem come, for one material i only can configure one "Item Group", which means the posting account is fixed for a material.

If the material is used for production, i will Credit the Raw material(1401) when we purchase it, But if we sold it directly as a finished product, i should be Credit from product(1402).

Is there way to fix this problem by not creating another material ?

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  • Community Member Profile Picture
    Community Member on at
    RE: One material for multiple purpose

    Hi,

    As I understand, your problem is that you want to have 2 different main accounts for “Product receipt” on Purchase orders, depending on if you buy this product for production usage, or for sales order deliveries? However, when you make the inventory issue, you will be able to have the 2 different main accounts 1401 and 1402 through the Item group settings for Sales order packing slip (1402) and for Production picking list issue (1401).

    Maybe you could use the Financial dimensions to sort out purchase costs for the 2 different purposes? I assume each purchase order is assigned for either the production or the sales purpose? If so, a workaround could be to manually change the dimension on the purchase order line, e.g. to use different cost centers.

    Best regards,

    Leif

  • Suggested answer
    Fredrik Sætre Profile Picture
    Fredrik Sætre 12,644 on at
    RE: One material for multiple purpose

    It uses a different account when sold then deducted in production. You define the sales debit for the raw material to be deducted from 1401 on the raw material item group...

  • Fredrik Sætre Profile Picture
    Fredrik Sætre 12,644 on at
    RE: One material for multiple purpose

    And you should not deduct from a different account then the inventoried account when you sell a raw material, because that would mess up your accounting.

  • Community Member Profile Picture
    Community Member on at
    RE: One material for multiple purpose

    [quote user="Fredrik Sætre"]

    And you should not deduct from a different account then the inventoried account when you sell a raw material, because that would mess up your accounting.

    [/quote]

    Hi Fredrik

    Thanks for your reply, Base on the Chinese Accounting convention, If the material you bought used for sales purpose, It should be Debit in the 1402, and if this material you bought is used for production, it should be Debit in the 1401. (caused by tax issues).

    But we only can configure one type of main account for purchase for a material. this is the problem.


    Many thanks.

  • Community Member Profile Picture
    Community Member on at
    RE: One material for multiple purpose

    [quote user="LeifWoxlin"]

    Hi,

    As I understand, your problem is that you want to have 2 different main accounts for “Product receipt” on Purchase orders, depending on if you buy this product for production usage, or for sales order deliveries? However, when you make the inventory issue, you will be able to have the 2 different main accounts 1401 and 1402 through the Item group settings for Sales order packing slip (1402) and for Production picking list issue (1401).

    Maybe you could use the Financial dimensions to sort out purchase costs for the 2 different purposes? I assume each purchase order is assigned for either the production or the sales purpose? If so, a workaround could be to manually change the dimension on the purchase order line, e.g. to use different cost centers.

    Best regards,

    Leif

    [/quote]

    Hi Leif

    Is it possible for me to use the "Category relation" in the "Item posting" settings ? 

  • Community Member Profile Picture
    Community Member on at
    RE: One material for multiple purpose

    Hi Jianrui,

    Yes, is it possible for Sales and Purchase posting, i.e. to select a main account based on product categories. However, not for Production posting – here you have to use the Item group (or the product).

    Best regards,

    Leif

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