Transfer Orders Posting Financial Adjustment

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Posted on by Community Member

Hello,

This is bit of a re-hash of another question I've asked (still no responses so am trying to re-phrase it :) ).

We are a retail business with one site and are using a standard cost valuation model for our non-concession items. Sometimes, transfer orders (moving warehouse to warehouse) and transfer journals (moving within the same warehouse) appear to cause financial adjustments/postings. I understand that this would be expected when transferring between different sites, but am not expecting this when transferring between warehouses in the same site.

See below for a screenshot.

And when focusing on the transfer order above only, we can see that an adjustment has been made only to the initial shipment into the transit warehouse.

Only items with a change to standard cost appear to be doing this.

So in summary - why are we seeing standard cost adjustments against transfers within the same site? Is this expected? If so, why is AX doing this?

Thanks all!

Omar

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Ludwig Reinhard Microsoft Employee on at

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Hi Omar,

What is the posting type related to those adjustment transactions?

Best regards,

Ludwig

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Community Member on at

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Hi Ludwig,

Thanks for the response. If I click on the "ledger" tab of the transaction line for the transfer order, I can see that the balance sheet posting is for stock issue:

Is that what you mean?

There is no financial voucher posting for this.

Kind regards,

Omar

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Ludwig Reinhard Microsoft Employee on at

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Hi Omar,

Thank you for that.

If you click here stock-settlement. What is it that you can identify?

Best regards,

Ludwig

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Community Member on at

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Hello Ludwig,

Sure - when I click on Stock --> Settlements I can see this:

(There are no settlements for any other InventTrans lines relating to this transfer order).

Here are the screenshots from the general and ledger tabs of the settlement form above:

General:

Ledger:

Kind regards,

Omar

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Ludwig Reinhard Microsoft Employee on at

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Hi Omar,

The screenprints say that the adjustment is caused by a cost revaluation.

Do you have the latest cost and purchase price parameters active in the released product form?

Can you replicate the issue with the cost price adjustment in another (demo) Environment?

Are you aware of any system modifications that have been made?

Best regards,

Ludwig

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Weaveriski 23,620 Moderator on at

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In the storage dimension is the warehouse set as a financial dimension, meaning you can hold different standards per warehouse and the difference you believe is at site is more granular and is at warehouse as well?

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Hello Ludwig,

No, we haven't got either "latest cost price" or "latest cost price" ticked against any of our products. What is the downstream functionality of ticking each of these? Have you got a link to a resource I can read?

We did make a couple of modifications around the entry of standard cost prices at the time of our AX go-live about two years ago. These are:

1. Cost prices can only be entered manually via the UI at item level (I *think* this is a modification, but may be standard). For these, standard costs are entered with only a corresponding InventDim record for "site" - all other inventory dimensions are blank.

2. An upload tool which allows the bulk creation of products, prices, POs etc. from one spreadsheet. This creates a separate standard cost line (i.e. a line on InventItemPrice) for each released product variant. I'm not sure if it is important, but oddly the InventDimIds for these records can reference different warehouses (and not all of these are even valid warehouses - i.e. there is no validation on inserting these records).

I haven't tried replicating on our UAT environment yet, as I'm not sure of the steps which are required - it seems to be a sporadic occurrence at the moment.

Kind regards,

Omar

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Community Member on at

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Hello Steven,

Thanks for your response.

We don't hold the warehouse as a Financial Dimension as such (GL --> Setup --> Financial Dimensions --> Financial Dimensions) but we are allowing "Financial stock" in the storage dimension group. Here's a screenshot:

Kind regards,

Omar

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Weaveriski 23,620 Moderator on at

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Hi Omar

That means you are costing at the warehouse level, so cost differences on a transfer need to post somewhere. Is you standard cost the same in the costing version by warehouse?

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Community Member on at

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Hi Steven,

Ah, interesting. We only have one cost version set up. So what could cause a cost difference to occur at the warehouse level?

Why would one transfer order line from and to the same warehouses be a candidate for adjustment, but not others?

Kind regards,

Omar

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