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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Rounding variance
Microsoft Dynamics AX (Archived)

Rounding variance

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Posted on by sri17 346

Hi Masters,

Seeking your help in understanding why huge amounts posting to ‘Rounding Variance’ account used for Standard costing in Microsoft Dynamics AX 2012.

The client uses standard cost for all items and In the item postings, on standard cost variance tab, I can see an account ‘Rounding Variance’ defined. 

For a few standard cost items, when a purchase order invoice is posted, I see some small values (0.01, 0.03) hitting the ‘Rounding variance’ account and also sometimes on posting the invoice, it is observed that system posts huge amounts (Cost price for the item) to the same ‘Rounding Variance’ account.

The observation is that all items standard cost price had activated and in addition, there is no difference between purchase order cost price and the standard cost price activated.

Please share more insights on this abnormal behavior?  

Thanks !!

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  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi,

    If you run an older AX2012 version then this behavior that you observe might be due to a system bug.

    Please check LCS for available hotfixes in this case.

    Many thanks and best regards,

    Ludwig

  • sri17 Profile Picture
    sri17 346 on at

    Hi All ,

    AX 2009

    The observation is that the rounding variance amounts posts for foreign vendor purchase transactions only .

    Standard cost has been activated for all items , but for foreign vendor purchase orders,the purchase cost price picks up from the purchase trade agreements ,not from the activated standard cost form .

    Please share more insights how to identify the root cause of the issue.

    Thanks !!

  • Suggested answer
    guk1964 Profile Picture
    guk1964 10,888 on at

    One issue that can occur is with backdated transactions when the adjustment is applied to current date and by then the inventory quantity may have changed see blogs.msdn.microsoft.com/.../standard-cost-rounding-adjustments-posted-as-at-system-date-and-not-as-at-the-transaction-date

  • sri17 Profile Picture
    sri17 346 on at

    Hi All ,

    The case has been analyzed further and observation is that some misc charges attached against the Purchase order line level  posting to rounding variance accounts.

    PO Currency – EUR

    Item cost – $ 100

    Freight cost – $ 10

    Misc chages posting configuration as cited below

    Debit type – Item

     Credit type  - Ledger account

    Voucher entries :

    ===========

    Purchase price variance  - Dr  -  EUR currency

    Purchase freight     - Cr – Company currency

    Rounding variance  -  Cr- EUR

    Rounding variance – Dr – Company currency

    Can I know why amounts posting to rounding variance accounts for foreign currency purchase transactions?

  • Suggested answer
    guk1964 Profile Picture
    guk1964 10,888 on at

    Assuming your charges are set up correctly, then one possibility I have mentioned before with regard to charges is that it depends on the status of the PO at the time they were added. When added at invoice stage you can  have what appear to be silly numbers until you run inventory close - but Iyouwould not expect that to reflect in a rounding account. Nonetheless the very last comment on this thread for example sounds like your situation: https://community.dynamics.com/ax/f/33/t/155306. in which case inventory close is my first  thought-as mentioend in this post https://community.dynamics.com/ax/f/33/t/261024

    - You might also go to Docs where you can read about sum recalculations and rounding differences. But there is nothing there that explains your situation.

    https://docs.microsoft.com/en-us/dynamicsax-2012/appuser-itpro/about-sum-recalculations-and-posting-of-rounding-differences

    .

  • sri17 Profile Picture
    sri17 346 on at

    Thanks for the reply .

    The Misc charges will be added automatically while creating a PO ,since misc charges configured against the vendor and line level in AP module , so there i no chance of adding while posting invoices .

    Voucher entries :

    ===========

    Purchase price variance  - Dr  -  EUR currency

    Purchase freight     - Cr – Company currency

    Rounding variance  -  Cr- EUR

    Rounding variance – Dr – Company currency

    Can I know why amounts posting to rounding variance accounts for foreign currency purchase transactions?

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