How Moving Average method behave for Purchase Return?

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Hi All,

I have an issue for Product Receipt and Purchase Invoice for Purchase Return. The Purchase price in PO is $5,987.8 but when the Product Receipt created, AX pick up the moving average cost per unit (in this case $4,347.24) at the time of recording instead of PO price. The issue is the total AP Temporary (AP Temp) not zero due the diff of PO price and moving average cost. The diff is $1,640.56. My user want to get the Total of AP temp become zero. Is there any setup or work around we could do to fit this requirement?

Following is the scenario:

1) Product Receipt entries:

Dr. AP Temp $5,987.8 -->posting type: Purchase,Accrual

Dr. AP Temp $4,347.24 --> posting type: Purchase expenditure, un-invoiced

Cr. AP Temp $5,987.8 --> posting type: Purchase expenditure, un-invoiced

Cr. Inventory $4,347.24 --> posting type: Product receipt

2) Purchase Invoice entries:

Dr. Accounts Payable 6,406.95 -->posting type: Vendor balance

Dr. AP Temp 5,987.8 -->posting type: Purchase expenditure, un-invoiced

Dr. Inventory 4,347.24 -->posting type: Product receipt

Dr. AP Temp 4,347.24 -->posting type: Purchase expenditure for product

Cr. GST -419.15 -->posting type: Sales Tax

Cr. Inventory -4,347.24 -->posting type: Purchase, inventory receipt

Cr. AP Temp -4,347.24 -->posting type: Purchase expenditure, un-invoiced

Cr. AP Temp -5,987.8 -->posting type: Purchase, accrual

Cr. AP Temp -5,987.8 -->posting type: Purchase expenditure for product

Thanks.

3290000000	SGD	-5987.8	-5987.8	Purchase expenditure, un-invoiced
1670000001	SGD	-4347.24	-4347.24	Product receipt
3290000000	SGD	4347.24	4347.24	Purchase expenditure, un-invoiced
3290000000	SGD	5987.8	5987.8	Purchase, accrual

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Ludwig Reinhard Microsoft Employee on at

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RE: How Moving Average method behave for Purchase Return?

Hi,

Can you provide some Information on what steps you followed to create and post the return? Did you copy from the original PO, create a new PO with negative qty, etc.

Many thanks,

Ludwig

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Community Member on at

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RE: How Moving Average method behave for Purchase Return?

Hi Ludwig,

I'm creating a new PO with negative qty. Post the Product Receipt then post the Invoice.

Thanks.

Regards,

Grace

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Community Member on at

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RE: How Moving Average method behave for Purchase Return?

Dear All,

Could anyone please enlighten this case? Is this standard in AX or bugs of Purchase Return?

Appreciate your help.

Thanks,

Grace

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Matloob 781 on at

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RE: How Moving Average method behave for Purchase Return?

Hi Aquamarine,

We had a similar situation in one of our clients and i have personally spent a lot of time investigating this issue and finding a possible resolution.

Microsoft did provide a application hot fix for this problem KB 3097478 but our technical team has analyzed this hotfix and unable to apply in AX environment as this hotfix has link to various other hotfixes which needs to be applied in parallel to this.

Apart from this, the difference which you have referred above in the control account "Purchase expenditure for product" of $1640.56 is indeed because system is not able to mark the credit note with original PO so unable to pick actual cost from original PO hence taking running average price calculated by inventory costing.

This difference then automatically be adjusted once inventory closing is processed and the entry in the above scenario would be DR Purchase expenditure for product CR Purchase inventory receipt.

Once inventory closing is completed please check the control account of purchase expenditure for product, it should be zero.

Regards

Mohammad Matloob

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DavidGunawan 1,381 on at

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RE: How Moving Average method behave for Purchase Return?

Hi Mohammad Matloob,

Thanks for you reply. From my understanding, we not need to run the inventory closing for moving average method. I'm trying to do that in testing environment but got error related with the BOM formula.

I also have tried to apply this KB 2736608 but not working. Did you solve the issue by running the inventory closing?

Regards,

Grace

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Community Member on at

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RE: How Moving Average method behave for Purchase Return?

Hi Mohammad Matloob,

Sorry I am using different account (David Gunawan) to reply you.

Regards,

Grace

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Matloob 781 on at

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RE: How Moving Average method behave for Purchase Return?

Yes, as i have described above. this problem of having variance in Purchase expenditure for product account in case of PO credit note resolves by running inventory closing.

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Community Member on at

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RE: How Moving Average method behave for Purchase Return?

Hi Mohammad Matloob,

Thanks for your reply. I don't think I could run the inventory closing as I am worried it would be impact to another items. For information, my company never run the inventory closing as the moving average costing not required to run it. May I know if it possible to run Inventory closing for one item only so I could test it out?

Thanks.

Regards,

Grace

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Matloob 781 on at

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RE: How Moving Average method behave for Purchase Return?

Hi Grace,

Not sure if inventory closing can be processed for one single item as inventory closing means to close all inventory module transactions occurred during the period.

Inventory closing is a recommended step to be performed monthly whether weighted average method is used or FIFO LIFO is used, it used to adjust all items where system has left some difference in control accounts as well as recalculation of item cost.

Regards

Mohammad Matloob

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Community Member on at

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RE: How Moving Average method behave for Purchase Return?

Hi Mohammad Matloob,

As mentioned, I'm using Moving Average. From what I read in Microsoft white paper, this method not require to run the Inventory closing.

Thanks.

Regards,

Grace

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