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I would like to hear from anyone that is currently using this valuation method in a manufacturing environment.
Thanks
Eddie
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Hi Eddie,
What kind of information are you looking for?
Moving average will get the cost price at the moment of product receipts. Usually the financial value can be different due to e.g. additional costs or in case of purchase order another invoice price.
Hi Andre
I'm actually want to hear some experiences of anyone using this method in Ax, especially in manufacturing. Is there any risks or issues that one needs to look out for when using this from a production point of view? What is the benefits you experience?
Moving average is a perpetual costing method. Moving average is based on the average principle, where the costs on inventory issues do not change when the purchase cost does. The difference is capitalized and is based on a proportional calculation. The amount that remains is expensed.
here is the complete detail including valuation method
technet.microsoft.com/.../hh597235.aspx
Hi Eddy,
I have seen the moving average working incorrect due to not having the correct price available at moment of product receipt or production order.
You have to ensure the price on the purchase order is quite correct and also for production there is a parameter which will take the estimated costprice instead of the actual production postings. This production parameter is called ' Use estimated cost price' and should be enabled when you are using moving average.
Luckily it is possible to revaluate the moving average when needed. When the price on the PO is zero, it will bring down the average...
One advantage is that you don't have to run the inventory closing job for these items.
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