Inventory Cost in Purchase Order

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Posted on by Community Member

Hiii everyone,

I am facing a problem, after invoicing a PO with some stocked products inventory cost is not being fetched.

This problem is occurring with some of the PO's while almost many of them PO's have fetched the Inventory Cost accurately, but few of them are not fetching it. Can you please help where's the exact problem behind it?

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Guy Terry 28,924 Moderator on at

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Hi Sayan,

What do you mean when you say the cost is not being fetched? Where do you see in AX that the cost is not being fetched when you expect it to?

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Hi Terry,

I mean to say the product receipt posting cost is not fetching for some purchase orders.

While the products are same and many of them have fetched it but few of them shows problem.

Thank you,

Regards,

Sayan

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Guy Terry 28,924 Moderator on at

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Sorry Sayan, I still don't really understand. Can you describe where you are looking to see that the cost is missingt? And can you explain what the status of the PO is at this time?

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Prashant Singh 8,802 on at

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With those item please check the item model group >> Post physical inventory & Post financial inventory

Post physical inventory: Select this check box to post physical item transactions in the ledger.

Post financial inventory: Select this check box to post the updated financial value of items in the ledger.

When a purchase order is invoice-updated, the value of the items is posted to the inventory receipt account.

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Hii Terry,

I am really sorry that I could not make you clear my problem. That's obvious my problem.

Thanks,

Regards,

Sayan

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Community Member on at

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Hello Prashant,

Yes both the check-boxes are ticked in the right order, just can't understand how can be the issue related to the same item whereas this same item has been used for some other purchase orders which is completely fine.

Thanks,

Regards,

Sayan

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Prashant Singh 8,802 on at

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it should not be the case. If your setup is same system should not behave like this. So you should verify your item setup again and AP parameter (Post receipt in ledger).

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Hii Prashant,

Thank you, for your help, sure I will take a look on these steps.

Thanks,

Regards,

Sayan

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Guy Terry 28,924 Moderator on at

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Hi Sayan,

I don't want to give up that easily! If I explain the problem I think you're having, you can correct me if I'm wrong:

You receive some items on a Purchase order (Product receipt is posted). Afterwards, you look at the cost price of the on hand inventory, and some items have no cost price. When you sell the items, they are sold with no cost price.

Is that right? If so,

I guess the Item model group of your items has an inventory model which is FIFO, Weighted average or Weighted average date? On the Item model group, 'Include Physical Value' is unticked?

If that is correct, then it is the 'Include Physical Value' tick box which is responsible. It means that AX can only use the cost from the Purchase order when the Purchase order becomes invoiced. Up until then, it does not know the cost of the items on the PO. If the item is not already in stock (i.e. from some other PO), then the items will have no cost.

This is not always a problem. Some people run this way if their PO prices are often wrong. And in any case, if you are invoicing your POs at some point and running Inventory close, Inventory close will adjust the costs of the sales orders.

However, unless your PO prices are normally wrong, I would think about using the 'Include Physical Value' setting.

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Hii Terry,

Thank You, for responding back. Actually I haven't sold the item I have just invoiced it.

For Ex:

With item A I have created 10 PO where 7 of the Purchase orders have fetched the cost amount but 3 of them are not fetching the cost amount. As Prashant told me to look for the AP parameters and verify the setup, all are done correctly. Why is this occurring still do't know.

Thanks,

Regards,

Sayan

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