Microsoft Dynamics AX (Archived)

Recursive costing in inventory closing (Model: Average by date)

(0) Share

Report

Posted on by Community Member

My model setup :

We have setup in inventory model as in the picture.

- In inventory model, we have Site and Configuration setup.

My production procedure :

- Case 1 : We have production with type "Journal BOM" as parameters that we setup in the picture. Will this cause recursive calculation and get the problem in My problem below ?

- Case 2 : We change the production type to "Production order". Do we still get the same result with Case 1 ?

My problem :

1. Recursive costing calculation when do inventory closing and I got warning as below attached picture (From Case 1)

.:. In case we don't want to use Marking Transaction in Axapta 2012, are there any suggested solutions for both cases ?

.:. In case we don't want to use setup parameters in Inventory model in Axapta 2012, are there any suggested solutions for both cases ?

*This post is locked for comments

I have the same question (0)

All responses (9)

Answers (1)

Ludwig Reinhard Microsoft Employee on at

Like (0)

Report

Hi,

If 'recursive calculation' means that you production costs might be modified once you run the inventory Close, then the answer to your cases 1 and 2 is yes. That is, AX might - depending on your inventory transactions - adjust those costs.

The message stated under 'your problem' does not indicate that something is wrong but that AX cannot fully settle a transaction when running the inventory close. This transaction might be picked up with the next inventory Close.

Can you elaborate on your last questions?

Do you want to avoid the recursive adjustments through the inventory close? If so, have you thought about using other inventory models such as moving average or standard costs?

Best regards,

Ludwig

Was this reply helpful? Yes No
Guy Terry 28,924 Moderator on at

Like (0)

Report

'Transaction cannot be fully settled' is not a problem. Carry on Invoicing your purchase orders, Ending your production orders and running Inventory close each month. Transactions which could not be fully settled one month will get settled in another; and new transactions which could not immediately be fully settled will appear to ensure that you keep seeing this warning!

Was this reply helpful? Yes No
Community Member on at

Like (0)

Report

Dear Dr. Ludwig,

I have thought about changing to use other solutions, but still i cannot get what I want.

My attached file is what I think it should be. It shows the result after inventory closing, and what my idea is.

Best regards,

Praden

Was this reply helpful? Yes No
Suggested answer

guk1964 10,888 on at

Like (0)

Report

You need to explain why you think the right numbers, are 'right".

The start value for the first transfer differs. So how did that difference arise?

You are using weighted average date, rather than weighted average, so that might be a reason for a calculation difference if you are using weighted over the whole period for your manual logic.

If the system cannot settle, then its not finished with the transaction, and as Guy says it will settle it in a future period, and make a correction to inventory value at that time, when it has the information that it needs. This happens typically because not all financial updates are done (your set up allows financial negative).

Was this reply helpful? Yes No
Guy Terry 28,924 Moderator on at

Like (0)

Report

Hi Praden,

On your Storage and Tracking dimension groups (for this item), which lines are 'Active' and have 'Financial inventory' ticked?

Was this reply helpful? Yes No
Community Member on at

Like (0)

Report

Dear magic1949,

What I think was right because its on transfer process, so the unit price shouldn't be changed.

Dear Guy,

My parameters setup in picture.

1. Product dimension groups

2. Storage dimension group

3. Tracking dimension group

PS. 1. What is Inventory Profile in Tracking dimension groups ? Do I have to tick setup any parameters ?

2. What used of Inventory Profile ?

Was this reply helpful? Yes No
Ludwig Reinhard Microsoft Employee on at

Like (0)

Report

Hi Praden Chaisan,

The inventory profile is - to my knowledge - a Russian country-specific functionality. Not sure why you see this in your environment. For which country have you setup your company?

Best regards,

Ludwig

Was this reply helpful? Yes No
Verified answer

Guy Terry 28,924 Moderator on at

Like (0)

Report

Hi Praden,

If I understand right, you want the produced cost of Batch B-01 to be the cost that is used when you 'Transfer' it.

Where, what is actually happening (because of your setup, and because of 'Weighted average date') is that Inventory close is setting the cost of your Transfer to some different receipt than you expected.

I can see two ways round this. One is to use 'Inventory marking' to link the Produced item to the BOMLine. This is a manual process, and probably not realistic if you have a lot of transactions.

Instead, I suggest testing a different setup on your Tracking dimension group. If you enable 'Financial Inventory' on the Batch line, AX will only use the cost of the relevant batch on each BOMLine (right now, it is ignoring Batch for costing purposes).

For Inventory profile - you can ignore it. It's not 'Active' in your setup.

Was this reply helpful? Yes No
Suggested answer

guk1964 10,888 on at

Like (0)

Report

Cost at batch level, then you have batch specific costs that are not averaged with each other.

Was this reply helpful? Yes No