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Dynamics 365 Community / Forums / Supply chain | Supply Chain Management, Commerce / Finished Product Cost ...
Supply chain | Supply Chain Management, Commerce
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Finished Product Cost Posting

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Posted on by Fischjm78 34
 
I've encountered an issue with our sales order transactions where the physical and financial cost amounts are inconsistently posted. While some transactions process and post these amounts correctly, others do not, leading to discrepancies that ultimately affect our Cost of Goods Sold (COGS) account. Specifically, transactions that miss these postings do not contribute to the COGS, creating a gap in our financial tracking.
To provide a clearer picture, I've attached a screenshot showcasing the financial transactions for sales orders. As you can see, not all transactions are posting as expected. 
I'm reaching out to see if anyone has experienced similar issues or might have insights into why this inconsistency occurs. Any advice on how to ensure consistent posting for all transactions would be greatly appreciated.
Thank you in advance for your help!
//
  • André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 291,280 Super User 2024 Season 2 on at
    Finished Product Cost Posting
    Hi Fischjm78,
     
    When you produce items and report the goods as finished, it is possible to sell these items already, before calculating the cost and end the production orders. In that case, the cost is at that moment not up to date. As you are using FIFO, are you periodically running the inventory recalculation and/or inventory closing job? This job is recalculating the costs of goods sold by looping the "purchased" inventory transactions and allocate the costs based on the FIFO principle.
     
  • Fischjm78 Profile Picture
    Fischjm78 34 on at
    Finished Product Cost Posting
    Is this what you wanted to see?
     
  • Suggested answer
    Raphael Volk Profile Picture
    Raphael Volk 114 on at
    Finished Product Cost Posting
    Hi Fischjm78,
    can you also show us a sreenshot were we can see the receipt transactions of the item.
    It looks like that there are receipt transactions with "zero costs".
    So the inventory closing (FIFO) has matched the sales order transactions with zero cost reciept transactions.
  • Fischjm78 Profile Picture
    Fischjm78 34 on at
    Finished Product Cost Posting
    Andre,
     
    I have attached a screen shot of the item model group for this product. This product is manufactured here so we do not purchase and then sell. They cost should represent the raw materials that went into making the product. Let me know if you think we should set the product costing up different.
     
  • André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 291,280 Super User 2024 Season 2 on at
    Finished Product Cost Posting
    Hi Fischjm78,
     
    There can be several causes for this behavior. Can you update us on what exact settings you have on the item model group? Particularly, I'm interested in the inventory costing model and whether you have enabled negative inventory and include physical value or not.
    In case the physical value is not enabled and the purchase invoice is not posted, the cost is not known for the sales transaction. In case you allow for negative inventory it can be the case that no cost is known. Depending on the costing methodology, you can run a periodic closing and recalculation job that will loop through the transactions and will allocate the costs based on e.g. FIFO afterwards.

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