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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / FIFO Performance – Aut...
Small and medium business | Business Central, N...
Suggested Answer

FIFO Performance – Automatic Cost Adjustment in High Volume Environment

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Posted on by Sharon12 9

Hi everyone,

We are looking for advice from anyone running Microsoft Dynamics 365 Business Central with FIFO costing in a high-volume distribution environment.

Our current setup is:

Costing Method: FIFO

Automatic Cost Adjustment: Automatic

Expected Cost Posting: Enabled

Approximately 1,000 sales orders processed per day

Approximately 1,000 warehouse shipments and sales invoices posted daily

As our transaction volumes continue to grow, we are beginning to experience performance degradation during posting. We are reviewing whether Automatic Cost Adjustment could be contributing to the issue.

My understanding is that FIFO requires cost adjustment to ensure inventory costs are applied correctly. However, I wanted to understand whether anyone has successfully changed Automatic Cost Adjustment from Automatic to Day (or another option) and instead relied on the Adjust Cost - Item Entries job queue.

If so:

Has this improved posting performance?

Are there any drawbacks or risks with FIFO?

How frequently do you run the Adjust Cost job?

Do you also run Post Inventory Cost to G/L as a scheduled job?

Are there any best practices for high-volume environments processing over 1,000 warehouse shipments and invoices per day?

We're trying to understand the options before making any changes and would appreciate hearing how others manage FIFO costing at scale.

Thank you.

Categories:
Dynamics 365 Business Central
I have the same question (0)
  • Manish Sharma Profile Picture
    Manish Sharma 142 on at
    I would suggest setting the Adjust Cost - Item Entries job queue.
     
    Another option you can try exploring is background posting via Job queue, check in sales & receivable setup.
  • Suggested answer
    OussamaSabbouh Profile Picture
    OussamaSabbouh 18,722 Super User 2026 Season 2 on at
    Hello,
    Yes, Microsoft explicitly states that Automatic Cost Adjustment = Always can slow posting performance as inventory volume grows, so for a high-volume FIFO environment, changing it to Day, Week, or even Never and running Adjust Cost - Item Entries through the job queue is a valid approach. FIFO costing itself is not compromised; the main drawback is that unit cost, COGS, margin, and inventory valuation may remain temporarily outdated until the adjustment job runs. Microsoft recommends running cost adjustment as often as possible during nonworking hours, and for your volume I would start with at least a daily run, then increase the frequency if the business requires more current costing. I would also schedule Post Inventory Cost to G/L after the cost adjustment job, never at the same time as cost adjustment or heavy sales/purchase posting, to avoid locking. For this volume, I would test Day first rather than jumping directly to Never, monitor posting performance and the Inventory Cost Adjustment page, and only move further if needed.
     
    Regards,
    Oussama Sabbouh
  • Suggested answer
    Grigorios Mavrogeorgis Profile Picture
    Grigorios Mavrogeorgis 3,049 Super User 2026 Season 2 on at

    Hi, yes, Never plus the scheduled job is what we run at clients with this kind of volume. But careful, Day is not really the fix you think, it still runs the adjustment at posting, only the window is one day, and with 1000 shipments daily you keep most of the cost. Never is what actually takes the work out of posting.

    Search Schedule Cost Adjustment and Posting in Tell Me, it sets both jobs for you. Nightly is fine, but keep Adjust Cost, Post Inventory Cost to G/L and the normal posting away from each other, otherwise you get locking. Same job queue category helps.

    Drawback on FIFO is only that costs stay provisional until the job runs, so valuation and margin numbers during the day are not final. Nothing is lost.

    One question, with expected cost posting on top of 1000 shipments, do you really need those interim entries? Is a lot of extra value entries.

    Glad to help - follow up if anything is unclear.   

    ►  If this solved it, marking it verified helps others too.       

    Regards,
    Grigorios Mavrogeorgis
    Business Central Consultant & AL Developer

    Work: Gmsoft Limited
    Blog:  insidebusinesscentral
    LinkedIn: linkedin.com/in/gregorymavrogeorgis

     

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