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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Inventory Physical Val...
Microsoft Dynamics AX (Archived)

Inventory Physical Value (Posted)

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Posted on by oldman.logan 565

Hi everyone. 

I was looking at a report called "Physical Inventory by Inventory Dimension". 

The report shows a certain "Inventory Physical Value (posted)" and shows a negative amount. 

Could you help me find out what is the meaning of Physical Value (Posted) and why is it negative? Screenshot below. 

1273.Inventory.png

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  • Suggested answer
    guk1964 Profile Picture
    guk1964 10,888 on at
    RE: Inventory Physical Value (Posted)

    There are many forum post on the topic of physical and financials stock e.g.. https://community.dynamics.com/ax/f/microsoft-dynamics-ax-forum/169799/what-is-the-difference-between-physical-and-financial-cost and on negative inventory  settings.

    Physical quantity posted is on-hand inventory that has been physically updated, i.e.received/issued but not financially updated (i.e. PO Receipt, SO Packing Slip, or Report as Finished posted to ledger).

    Physical amount posted is monetary value of on-hand inventory that has been physically updated but is not yet financially updated. e.g. a PO not invoiced.

    https://docs.microsoft.com/en-us/dynamicsax-2012/appuser-itpro/about-physical-and-financial-updates

    https://docs.microsoft.com/en-us/dynamics365/unified-operations/supply-chain/cost-management/physical-financial-updates

    As an inventory purist you might baulk at the idea of allowing negative physical stock but it is common and even essential for many industries e.g. Just in Time, Processing, Retail

    You may have a fast moving environment where you issue receipts before they are updated in the system or e.g.a  factory runs two shifts , goods are received for an urgent delivery. at the end of the evening shift and are picked and shipped before they are received in the system the next morning.

    You might be in a  retail store where goods are received or transferred in all day but you only update inventory at the end of day when the store closes. Another situation is that a vendor might have sent you blue shirts instead of white ones - the box s wrongly labelled, or maybe there are 12 in a box instead of 10 so you can sell more than the system thinks you have on hand. In such cases you don't want to lose a sale, nor keep the customer waiting so you update the stock later.

    You might run a food factory which pumps liquids or blow powders, or a plastic mouldlng industry that feeds pellets from a hopper - it is not practical to accurately pick so you backflush a theoretical quantity but you may get less component losses than expected and  make more than expected (higher yield and in theory used more stock than you actually did.'

    There are many other examples of why you might allow physical negative stock.

    There may also be data entry errors e.g you book in one UoM incorrectly then ship with the correct UoM. etc etc

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Inventory Physical Value (Posted)

    Hi,

    A simple example when this happens is a PO for which a packing slip and invoice has been posted. Assume that the packing slip has been posted last week and the invoice this week.

    As the invoice posting reverses the packing slip posting, i.e. the physical transaction a negative posting occurs.

    Now, if you run this report only for the current week where the invoice has been posted the physical column can show a negative amount.

    Overall this should not be an issue as the total amount that you see in the last column, i.e. the total inventory value, is still positive.

    Best regards,

    Ludwig

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