will the inventory close affecr the transaction which have been cost amount settled in previous period

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Posted on by Li Duke

currently we are doing the monthly inventory close based on FIFO. but we found something strange, that when we doing this month inventory close, it will update the transaction which occur very long time ago. from my understanding, each time inventory close should fix the cost amount settled based on FIFO. it should already find the related in-transaction. then why the latest inventory close will update the old inventory close result?

can anyone provide clear logic about this?

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Li Duke 10 on at

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RE: will the inventory close affecr the transaction which have been cost amount settled in previous period

Hi dear Ludwig

Ok, currently I will just take this as the root cause.

Though I still not quite clear, by checking the document provide from Microsoft, it was only mentioned with one time pairing for FIFO, not discuss for several times issue and receipt.

Also the Inventory Close operation only focus for 1 time oepration, what's the logic for mutiple times Inventory Close, and how they will impact each other also lack
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Ludwig Reinhard Microsoft Employee on at

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RE: will the inventory close affecr the transaction which have been cost amount settled in previous period

Hello Li Duke,

The 'inventory inter-unit payable' account indicates that this $0.01 results from an inventory transfer that involved two different inventory sites. So, you are right that this issue might be related to the transfers recorded.

If you bought 800 pcs and have not sold all of them then you might see such adjustment postings with $0.01 also into future until all of that material is completely sold/issued.

Best regards,

Ludwig
Li Duke 10 on at

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RE: will the inventory close affecr the transaction which have been cost amount settled in previous period

Hi Ludiwig

When using the amount equal to 0.01 or equal to -0.01 there about 100 records.

after adding criteria with cost center which I'm looking at, there were only 6 left, and 2 of them should related with this issue.

Posting type Account name Amount

Inventory profit LOSS - OTHERS - OTHERS -0.01

Inventory inter-unit payable CURRENT ASSETS OTHER - STOCK TRANSFER TEMPORARY 0.01

And one more thing I would like to provide is that my company using the pre-receive method,

which means when we purchase some goods, after the PO shipped from supplier, before we got the goods, we will doing the receipt first, so that we consider this good have become the company stock. But as the physical goods not arrived yet, the AX will automatically move this goods to a temporary stock. Only after we receive the physical good, we will move it back from temporary stock to real stock.

Do you think this will impact the InventoryClose operation?

As the issue item was purchased with a 800 quantity in one order, and until now, it was still remain some in stock.

But we didn't change this order's purchase price? so what's the logic cause the amount change.

BTW after looking at the transaction of the temporary stock transfer, the settled quantity changed, but when using the settled amount divided by settled quantity, it was 86.27803005( manually), while compare with the data before the InventoryClose, it was 86.2781709401(manually). I don't know why this unit settled amount is different.
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Ludwig Reinhard Microsoft Employee on at

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RE: will the inventory close affecr the transaction which have been cost amount settled in previous period

Hello Li Duke,

Can you open the voucher from the inventory closing and adjustment form and personalize the posting and transaction type fields into it?

Can you identify the $0.01 amounts from there?

Best regards,

Ludwig
Li Duke 10 on at

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RE: will the inventory close affecr the transaction which have been cost amount settled in previous period

@ Ludwig

Do you have any method to find the transaction with 0.01 adjustment.

And how to check the rounding related transations

I just check from background that select InventTrans table with issued ItemID and modified date from 2019-05-01 till now (as we perform monthly inventory close, so on the end of May and June, the inventory close not touch this transaction make me believe that the trigger should only in current month), but no record with CostAmountAdjustment equal to 0.01 or -0.01.

guk1964

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RE: will the inventory close affecr the transaction which have been cost amount settled in previous period

“Settlement” as the name of this table is a little misleading, because this table is used not only to store receipt-to-issue settlement information, but also for keeping a track of adjustment made for given inventory transaction. For issue inventory transactions, an adjustment is always calculated from settlement data, for receipt transactions an adjustment may be made independent from the settlement. When an adjustment of an issue cost price is made during an inventory recalculation, then the settlement usmade ‘in memory’ and the settlement record will keep only the adjustment value, but not the settlement data.

QtySettled

Settled quantity. If given record was created as an adjustment (not the settlement),then this field is blank.

CostAmuntSettled

Settled amount.If given record was created as an adjustment (not the settlement), then this field is blank

CostAmountAdjustment

Adjustment amount. This field is always not blank for adjustment records.

For settlement records this field has some value only when settlement has resulted in adjustment.

The Receipt-to-issue settlement created by inventory closing, is stored in this table as two records – one for the issue and one for the receipt. These two records share the same SettleTransId.

For adjustments – this table contain only one record per adjustment.

The Posted field in the inventSettlement table does not related to actual posting of the record into the General Ledger. This field is just a flag, which is used to mark records processed by the GL posting creation routine.

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Ludwig Reinhard Microsoft Employee on at

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RE: will the inventory close affecr the transaction which have been cost amount settled in previous period

Hello Li Duke,

What you write is in general correct.

Can you identify a posting and/or transaction type that were recorded with the other closures that show the 0.01 adjustment?

Is it possible that these are rounding related transactions?

If this is not the case then possibly ask a developer to debug and/or open a support case with MS to ensure that this is not the result of a bug.

Best regards,

Ludwig
Li Duke 10 on at

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RE: will the inventory close affecr the transaction which have been cost amount settled in previous period

Hi Ludwig

Thx for your reply

From the settlements I can see like below

Date Principle Settled quantity Amount settled Adjustment

2015-08-31 FIFO -1 -86.28 0.02

2016-09-30 FIFO 0.01 0.01

2017-09-30 FIFO 0.01 0.01

2019-07-31 FIFO 0.01 0.01

What I want to know is that why the FIFO inventory close have new "Amount settled" for this transaction.

I think after the InventoryClose on 2015-08-31, the transaction should be closed and never be updated in future InventoryClose operation.

But from settlements we can see that on 2016-09-30, 2017-09-30 and 2019-07-31 InventoryClose update this transaction 3 times.

Based on the FIFO logic each issue transaction should look for a receipt transaction based on transaction date from old to new, so once a issue transaction found a receipt transaction with enough quantity, it should be fixed and should be never update in future.

But now the real situation is even after 4 years, the InventoryClose operation still checking and update this transaction.
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Ludwig Reinhard Microsoft Employee on at

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RE: will the inventory close affecr the transaction which have been cost amount settled in previous period

Hello Li Duke,

The cost explorer should show you in a tree like format the receipts and issues and their cost prices for a specific item transaction so that you can trace where the price comes from.

If this does not give you sufficient insights you can alternatively click the settlement button, which shows you the transaction to which it has been linked to when running the close. You should be able to see things like the settled qty, the adjustment amount, etc. and you can directly navigate to the ledger voucher that has been generated.

The other thing that comes to my mind is the adjustment report that you can open from the closing form.

It is a SSRS report that provides you details of the adjustments that have been recorded when closing the inventory and can be opened directly in the closing and adjustment window.

Please let us know if that helped.

If not then please send us some additional screenprints where we can get some additional insights into your transactions.

Many thanks and best regards,

Ludwig
Li Duke 10 on at

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RE: will the inventory close affecr the transaction which have been cost amount settled in previous period

Any further suggestion?