Conversion process to Standard Costing

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Dear All,

Could you please share your experience on the conversion process to Standard Cost? For information, my company use Moving average and planning to change it to Std Cost. I've read the white paper about this. I just want to know the real situation when we're really going into that. Is this just simply run the conversion process?

I am also wanna know if I have to run the Inventory closing for Moving average before run the conversion process. As from what I know, no inventory closing for Moving average method.

Kindly please share your experience what is the challenge during the conversion process and how to check if the conversion process is well done (in terms of the finance view)?

Thank you so much.

Regards,

Grace

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Guy Terry 28,924 Moderator on at

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I have never done it, but I was looking at it recently and found that the standard cost conversion tool does not support items which have the Production type 'Formula'. If you try to add a Formula item, AX replies with 'Standard cost conversion of formula item is not allowed.'. Same is true of Co/By-products. Worth bearing in mind if you use any of those things.

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Hi Guy Terry,

Thanks for your reply. Let me try on it first and let you know the result.

Regards,

Grace

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Juergen Weber 2 on at

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Hello,

we have a customer that wants to move their finished goods from LIFO to standard costs. I found the MS whitepaper and read through it. I still have some questions, but I think it is a good starting point to work with.

Have you been successful with the coversion tool and the Whitepaper as a guideline or did you encounter some pitfalls that we should consider?

There is also one question that I also saw in an other post in this Forum. Is a costing sheet required if you run Standard costs but calculate the individual Standard cost for an item out of AX? I think yes, because otherwise you can maybe not determine the cost variances within a production order? Please correct me if I am wrong.

Any recommendations, advice, etc. in that concern is greatly appreciated.

Kind Regards

Juergen

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Community Member on at

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Hi Guy Terry,

my customer needs to convert to standard cost, but the are using Formula items (manufacturing environement). we are gettong the same error...Have you found any other alternative to resolve this issu??

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Guy Terry 28,924 Moderator on at

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Hi Iman,

No, I never heard of anything from Microsoft about this limitation.

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Community Member on at

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Hi All,

Just want to update that I had tried to run this conversion process in the testing environment of my company. I got lots of error.

- Data error (someone did data fixing but not doing correctly).

- For Finished Goods with Production Type ' Formula' couldn't update to Std Cost method.

- Conversion Process from Moving average to Std Costing: Error 'A critical error has occurred in function InventStdCostAdjust_StdCostConvert.adjustStdCostFinancial'.

In the end, I just can't finish the conversion process as too many errors need to resolved. So I ask my technical to update the Inventory model group from Moving average to Standard Cost by use the job. Then I explain to my Finance users that they would need to pass the adjustment manually at the ledger level as some items can't pass through the conversion process due to inappropriate data in system.

I think my case is bit special as many junk data and never do the inventory closing for many years in AX so very difficult to do this conversion process.

Regards,

Grace

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Community Member on at

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Same issue i am facing regarding products of type formula, AX 2012 conversion is not supporting formula item.

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Grace,

The white paper is representative of the real situation. Usually the biggest challenge is production. In general, you define a conversion period. Anything currently in process must be completed before the completion of the conversion. Anything that is started within the conversion period is fine. The system will identify conditions that much be met when you try to end the process. Follow the white paper, but it would make sense to me you would run an inventory close and try end any productions orders you can before this.

Regarding the formula items, I have the problem on a site that is currently trying to convert. I am going to research and let the group what I find.

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