Inventory management - Posting (Inventory expenditure, loss and Inventory expenditure, profit posting types)

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Issue: The inventory expenditure, loss and Inventory expenditure, profit posting configurations are used for both inventory adjustments and bill of materials WIP clearing accounts. This causes a conflict between two distinct processes – BOM processing and inventory adjustments. BOM processes fine, but when taking a physical and making subsequent inventory adjustments they components will be coded to WIP clearing as opposed to inventory Adjustments.

Details: During the course of BOM processing in Inventory (not the production module), these accounts essentially offset each other for the BOM components. The BOM items use the item group flag on the released product – Comp, Finished, Labor, Outside, Overhead, Print and Supplies. If an item group is not used then you are limited to coding every transaction to a single account defeating the utility of the Item code functionality.

During the course of taking a physical, these accounts are used to capture the physical adjustment. If the adjustment is a negative then the account is debited, if the adjustment is a positive then the account is credited.

The issue arises when we count any of the components - they will use the account 14025 instead of account 62350, because the system is recognizing the item group and using the associated account (14025).

Is this a design flaw? These accounts should be separate because the processes that use these accounts are distinct and not related. What am I missing here?

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Ludwig Reinhard Microsoft Employee on at

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RE: Inventory management - Posting (Inventory expenditure, loss and Inventory expenditure, profit posting types)

Hi Yuji,

You ended in the AX forum.

If you have a question related to D365FO then use the Dynamics 365 forums.

Best regards,

Ludwig
Yuji 4,125 on at

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RE: Inventory management - Posting (Inventory expenditure, loss and Inventory expenditure, profit posting types)

So is this still modifiable in D365FO by code?
Muhammad Burhan Zahoor 145 on at

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RE: Inventory management - Posting (Inventory expenditure, loss and Inventory expenditure, profit posting types)

Is that another way to implement both BOM and Counting Journal and separate ledger account used for this Inventory Expenidure Profit and Inventory Expenidure Loss.
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Brandon Wiese 17,788 on at

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RE: Inventory management - Posting (Inventory expenditure, loss and Inventory expenditure, profit posting types)

You can change this behavior quite easily.

Check out class InventMov_Jour_BOM and class InventMov_Jour_BOMLine, method accountOperations().

If you don't like that BOM journal receipts use InventAccountType::InventProfit and issues use InventAccountType::InventLoss, that is where those account types are found.
Ludwig Reinhard Microsoft Employee on at

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RE: Inventory management - Posting (Inventory expenditure, loss and Inventory expenditure, profit posting types)

Hi keysersozeca,

Are those alternative options working for you?

Best regards,

Ludwig
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Ludwig Reinhard Microsoft Employee on at

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RE: Inventory management - Posting (Inventory expenditure, loss and Inventory expenditure, profit posting types)

Hi,

Am I right when I assume that you refer to the BOM report as finished process and the posting of other inventory journals, such as counting, adjustment, ... journals?

If this is the case then you are right that there is no differentiation in the ledger accounts used.

One possibility to overcome this is using separate vocher series for the different journals. They still post to the same account but you have an identifier - the voucher number - that allows you differentiating between the different transaction types.

A second possibility that you have is using default descriptions for your inventory postings.

Also here you can use different descriptions for your journals and thereby allow your accountants to identify from where the transaction comes from. If you like you can even add fields from the invent journal lines table into your text.

Here is an example how this can be achieved.

Best regards,

Ludwig