Inventory Closing

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Posted on by Sajjad_00

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Dear All,

I face a strange issue where I close the inventory for the month of Jan 2018 where one Item Code get the following entries which create a discrepancy between GL and Subledger. I reached to this level after a long search.

Site Warehouse Physical date Financial date Reference Number Receipt Issue Quantity Cost amount Physical cost amount Financial cost amount Adjustment Amount settled Inventory unit
Site1 Prod 1/31/2018 1/31/2018 Weighted average inventory closing   Sold -9165.00 -31686.63 -534.19 -534.19 -31152.44 -31686.63 Pcs
Site1 Prod 1/31/2018 1/31/2018 Weighted average inventory closing  Purchased  9165.00 534.19 534.19 534.19  534.19 Pcs
Site1 Central 1/31/2018 1/31/2018 Weighted average inventory closing   Sold -105100.00 -13321.68 -654824.17 -654824.17 641502.49 -13321.68 Pcs
Site1 Central 1/31/2018 1/31/2018 Weighted average inventory closing  Purchased  105100.00 654824.17 654824.17 654824.17  654824.17 Pcs

Note: Same Code before and After this month is ok there is no issue. my version is AX 2012 R2- CU7

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Ludwig Reinhard Microsoft Employee on at

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Hello Sajjad Ahmed,

What exactly is the difference that you see between GL and inventory?

Which of those lines that you posted are responsible for that and what is their origin?

Any other additional information that you could add from your resaerch done so far would certainly help.

Many thanks and best regards,

Ludwig

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Sajjad_00 477 on at

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see everything was ok sudden from this year this issue get started. in some items randomly created this issue. only for this item the difference is more than 6 hundred thousand. I collect this from inventory to GL potential difference report. overall difference is inventory subledger to GL is 9 hundred thousand. no other clue till now get. I am afraid because this difference is continually getting increase. one more issue also I found that for another item when make a transfer from warehouse to warehouse it took almost 60% less weighted avg. cost and very next entry again 93% correct.

the only change is I apply the fix of vendor statement opening balance was not appearing. I took the hotfix from lcs and apply.

further if you could suggest what to do and what next to be?

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Ludwig Reinhard Microsoft Employee on at

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Hello Sajjad Ahmed,

What information did the potential conflict report provide? It typically shows a brief comment on what might be wrong.

Do you know what changes have been made to the item where you see the large difference? Has the item model group been changed or some accounting setup in the inventory posting matrix?

Best regards,

Ludwig

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Sajjad_00 477 on at

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no there is no change at all. everything remain same. normally this figures always remain equal but I don't know why its different.

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guk1964 10,888 on at

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Lets go back to basics. There are several parameters that can cause the Inventory not to match with the GL e.g.

Incorrect setup of posting profiles.

Improper setup of the item groups and ledger accounts in them.

Service type item may have been setup to get posted to inventory accounts.

Date of financial transaction update.

Item groups may have been changed on items by users(May be by mistake)

Posting of manual journals into inventory accounts.

All Dynamics AX inventory transactions are either an Issue, or a Receipt. So analyse those transactions for the item for the period:

Product information management > Common > Released products. On the Action Pane, click the Manage inventory tab. In the View group, click Transactions. View all issue transactions and receipt transactions associated with the selected product or product master.

View the settlements

Use the Cost explorer

Run the trial balance report for Inventory accounts at GL > Reports > Transactions > Periodic > Trial balance to ensuring that the opening value of the inventory is in sync with GL.

Run the Inventory value report by item group at Inventory management > Reports > Status > Inventory value report by item group and match the financial values of each item group with the trial balance report.

Run the Posting by Account report at GL > Reports > Reconciliation > Inventory – Item posting by account and review the transaction by the posting types to determine the transaction types posted to the inventory accounts and establish whether wrong transactions got posted to inventory accounts .

Run the Ledger transaction list report at GL > Reports > Transactions > Ledger transactions list to get a list of all transactions that may not have been captured by the Item posting by account report. This will help in analyzing unwanted transactions(Service item transactions , manual entries etc) got posted to inventory accounts.

Navigate to General Ledger> Common> Main Accounts Look for manual transactions that create a GL inventory difference.

Use the inventory value and potential conflicts report to identify e.g .whether users have changed the item group manually. If conflicts are listed then :

Extract a list of all the 'automatic' accounts that are included in inventory posting

Export all ledger account transactions for those accounts to Excel and include the posting and transaction type that indicate form where the postings on those accounts come. ( Personalise the form to Add posting type field to the grid display on the Main Accounts’ Posted Transaction form you can then filet and then copy to Excel).

You can also: Run the check cost price report, and check for Invoice price per unit error?/ UoM error?

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Sajjad_00 477 on at

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Hi Magic,

thanks for you suggestion but let me go through all what you suggested but again having a question why sudden that happen. since almost 4 years no issue like that and there is no change in the system also (no setup, no customization, no patch, no cu) except one and that's vendor opening balance issue on vendor statement.

please can you little elaborate what do you mean by these.

Incorrect setup of posting profiles.

Improper setup of the item groups and ledger accounts in them.

Date of financial transaction update.

Item groups may have been changed on items by users(May be by mistake) this point how to check because system is not so intelligent to identify this.

finally again same question that why system create this entry which is not balance in my query. that is not the normal behavior. if you have any clue for that. because what I now is if not wrong at the time of inventory closing system will check all open transaction accumulate the quantity / value and settle all close transaction against that. whatever is open will not be consider.

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Sajjad_00 477 on at

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Hi, I found one more issue in item group production posting if I am not wrong.

Account type Main account A/C Name Remarks

Production, picking list 110402 Raw Material Inventory

Production, picking list offset 110404 Work in Process

Production, report as finished 110402 Raw Material Inventory I think It should be Finished Goods Inventory Code

Production, report as finished offset 110404 Work in Process

Production, issue 110402 Raw Material Inventory

Production, issue offset 110404 Work in Process

Production, receipt 110402 Raw Material Inventory I think It should be Finished Goods Inventory Code

Production, receipt offset 110404 Work in Process

Production price variance ? is it necessary

Production lot size variance ? is it necessary

Production quantity variance ? is it necessary

Production substitution variance ? is it necessary

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Sajjad_00 477 on at

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Hi Ludwig,

no there is no change, as I mentioned the same item in next month closing goes almost near to correct. really I am not getting what exactly happing.

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Ludwig Reinhard Microsoft Employee on at

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Hello Sajjad Ahmed,

What exactly is the difference that you see between GL and inventory and how did you identify this difference?

I cannot identify this from the information provided above.

To get this issue resolved we first need to know what the difference is and where it originated from.

Would be great if you could find out and share the details.

Many thanks and best regards,

Ludwig

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Sajjad_00 477 on at

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Hi Ludwig,

inventory value report shows difference around 1M but in conflict report shows this.

Date interval code

From date 1/1/2018

To date 6/12/2018

Main account 110450

Exclude physical to ledger No

Exclude blank dimension values Yes

Dimension name

Dimension value

Module Balance

Inventory 15,727,438.98

General ledger 15,008,021.06

Discrepancy 719,417.92

when I review within conflict report I found many item but the biggest difference was I posted. and assume the same would happened for others also as I check 1 more item.

let me know which detail required I will post it. this file is huge so I am not sure if I can upload the complete excel file.

remarks for that particular item is this.

"The setting of the Post financial inventory check box is not correct for the item model group General in the Item model group form in Inventory management.

"

2) there is a difference in transfer order shipment more than 100K.

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