web
You’re offline. This is a read only version of the page.
close
Skip to main content

Notifications

Announcements

No record found.

News and Announcements icon
Community site session details

Community site session details

Session Id :
Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Inventory Closing post...
Microsoft Dynamics AX (Archived)

Inventory Closing post item cost variance into WIP for invoiced transactions

(0) ShareShare
ReportReport
Posted on by Peter Samir 446

Hi,

We have Microsoft Dynamics AX 2012 R3 CU9, We are using the project management and accounting module and we setup the WIP for the time and material projects.

If we released an item on a project the item cost was posted to the WIP account and once we issued the customer invoice, The item cost was transferred to the project cost account.

Our problem is once we run the inventory closing and adjustment, the item cost variance was posted to the WIP account although the item was invoiced. I think it supposed to be posted to the project cost account direct instead of the WIP.

So, Is it correct or there is a certain setup that I have to do to avoid such this scenario which affects the P&L?

Thanks

*This post is locked for comments

I have the same question (0)
  • Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi Peter Samir,

    Can you share the adjustment voucher that you identified including the posting type and the transaction origin of that voucher?

    Best regards,

    Ludwig

  • Peter Samir Profile Picture
    Peter Samir 446 on at

    Hi Ludwig,

    Thanks for your reply, But what do you mean by the adjustment voucher?

    Do you mean the "Inventory Closing Voucher" or the "Ledger Updates Voucher" for the project posted transaction?

  • Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi Peter,

    I mean the ledger updates voucher for the posted project transaction.

    Is this voucher different from the inventory closing voucher?

    Best regards,

    Ludwig

  • Peter Samir Profile Picture
    Peter Samir 446 on at

    Hi Ludwig,

    Below is a snapshot of the "Ledger Update Voucher"

    50230 - Project Cost Account

    12910 - WIP Cost Account

    40110 - Revenue Account

    10268.Untitled.png

  • Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi Peter Samir,

    Thank you for that screenprint.

    There must be something missing here (=>probably because of the filters) because the debit and credit amounts do not fully balance.

    Can you run a voucher inquiry in GL and show details of voucher CFM-10105 and voucher CFM170000127?

    Many thanks,

    Ludwig

  • Peter Samir Profile Picture
    Peter Samir 446 on at

    Thanks Ludwig

    Actually each voucher contains 550 lines approximately so it was too hard to attach it but after checking voucher number CFM-10105, I found that it was balanced with the "Inventory Accounts".

    So the inventory closing voucher CFM-10105 is fully balanced by the inventory and project cost accounts.

    On the other hand it is not clear to me what is the origin of voucher CFM-170000127? Although the above print screen shows that its ledger origin is "Post Cost" but I don't know what does it mean?

    The voucher CFM-170000127 is fully balanced by the WIP and project cost accounts.

    But I noticed that that the "Post Cost" voucher was created automatically with a creation date and time that is the same as the inventory closing execution date and time.

    Note: We never used Post Cost action (Project Management and accounting > Periodic > Time and material > Post Costs)

    Thanks

         

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    I Peter,

    I replicated your issue in a R3Cu11 system and guess that your point is the remaining WIP amount sitting on the wrong ledger account.

    I am not sure if you can call this a gap or not ... :-) but the workaround is to make use of the post cost functionality to clear the WIP account for the inventory adjustment. Before doing that please ensure that the adjustment parameter for invoiced transactions is active in the project parameters form.

    Please test this in a demo environment before using it in live.

    Even though the workaround resolves this issue, you regularly have to check your WIP accounts whether some adjustment amounts are sitting there. So, probably post a new idea on the Dynamics ideas Website and/or contact MS directly to get this resolved.

    Many thanks,

    Ludwig

  • Peter Samir Profile Picture
    Peter Samir 446 on at

    Thanks Ludwig,

    I would like to confirm that you get the same behavior on the R3-CU 11?

    And regarding the workaround, you said that I have to be sure that the adjustment parameter for invoiced transactions is active. Why??

    As my default setup is disabling the adjustment for invoiced transactions and I already tried to post cost for an invoiced transaction and it was posted to the project cost account and the WIP was cleared.

    Take a note that I will not invoice the variance amount that will be posted. So, Why do I need to active the adjustment for invoiced transactions?

    Thanks

  • Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi Peter Samir,

    In my system the cleansing of the WIP account worked only if the adjustment parameter was active. If you have been able to make this work without, fine. I must then double check that none of my colleagues modified something on the demo machine I have available.

    Best regards,

    Ludwig

  • Peter Samir Profile Picture
    Peter Samir 446 on at

    Hi Ludwig,

    Thanks for your reply, I logged into the LCS and searched into the "Issue search" area and i found two hotfixes but I don't know are these hotfixes related to my issue or not?

    First one is KB 3009687 Inventory recalculations post adjustments to "Project - WIP costs - Item" even when a project status is set to "finished". I checked the project status for most transactions that are posted into WIP while closing but it was "InProgress"

    Second one is the same issue exactly that I have but it is related to AX 2012 R2 KB 3158715 The item cost adjustment entry posts extra entries to the WIP account for a project when doing the inventory recalculation adjustment.

Under review

Thank you for your reply! To ensure a great experience for everyone, your content is awaiting approval by our Community Managers. Please check back later.

Helpful resources

Quick Links

Responsible AI policies

As AI tools become more common, we’re introducing a Responsible AI Use…

Neeraj Kumar – Community Spotlight

We are honored to recognize Neeraj Kumar as our Community Spotlight honoree for…

Congratulations to the November Top 10 Community Leaders!

These are the community rock stars!

Leaderboard > 🔒一 Microsoft Dynamics AX (Archived)

#1
Priya_K Profile Picture

Priya_K 4

#1
Martin Dráb Profile Picture

Martin Dráb 4 Most Valuable Professional

#3
MyDynamicsNAV Profile Picture

MyDynamicsNAV 2

Last 30 days Overall leaderboard

Featured topics

Product updates

Dynamics 365 release plans