Warehouse wise costing

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Posted on by Tayyab_Ali

Hi Experts,

We are using D365 Finance and operation on premise version, we are having the issue on warehouse level costing and using the moving average inventory valuation method..

Scenario:

Item A is purchased Qty3 with price of 1, and we create 3 product receipt in warehouse A1, each product received has 1 qty, at this movement purchased order is in received status.

Now 2 of the product receipt is transfer to warehouse A2, system took the average cost for transfer which is fine. At this point we have 1qty in warehouse A1 and 2qty in warehouse A2.

Now we create the purchase order invoice and when we create the PO invoice the invoice price is change to 5 instead to have 1 on invoice.

After creating the vendor invoice system is showing the different cost on both warehouse instead to show the same cost on each warehouse.

Storage dimension setting:

Site>Physical and financial allow

warehouse>physical and financial allow

Requirement:

Want to see same cost price on both warehouse.

Thanks

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Answers (1)

André Arnaud de Cal... 301,049 Super User 2025 Season 2 on at

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Hi Tayyab,

Can you explain if you now posted with the amount 5 or that recalculation is doing something weird? If you did change the price and warehouse A2 is not having the cost reflected, try to run the inventory recalculation or closing.

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Tayyab_Ali 25 on at

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Hi Andre,

I thing recalculation does not work in moving average inventory valuation method.

Thanks

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André Arnaud de Cal... 301,049 Super User 2025 Season 2 on at

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Hi Tayyab,

You are correct. I overlooked the word 'Moving'. In this case, the outcome is as expected by this costing model. If you had transactions which are financially posted (transfer in this case), they will not be re-evaluated. To prevent this type of huge differences, it is the best to have the receipt price as close as possible to the real price which will be invoiced.

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Rahul Mohta 21,032 on at

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as the requirement is to see same cost on both warehouse, in storage dimension group should not check Financial inventory

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Tayyab_Ali 25 on at

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Hi Rahul,

The financial inventory is not checked in at storage dimension group. But result is same.

Thanks

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MATTGUO 22,349 Moderator on at

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Hello Tayyab,

Use revaluation for moving average to revalue the item cost of warehouse A2.

And as Rahul said, should uncheck the financial inventory on the warehouse level for your requirement.

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Guy Terry 28,924 Moderator on at

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Hi Tayyab,

I recreated your scenario using an Item with a Storage Dimension Group on which Financial inventory is selected on only the Site line:

I raised a PO for Qty 3, Price 1 and Received all 3:

The next day, I use a Transfer order to move Qty 1 to a different Warehouse IN THE SAME SITE.

The next day, I post a PO Invoice for Qty 3 Price 5:

The next day, I sell one from each Warehouse:

Looking at the Sales order's Inventory transactions, I see that the same cost has been assigned to both sales lines:

If you want an Item to have the same cost in all warehouses of each Site, the answer is to use a Storage Dimension Group on which Financial Inventory is ticked only on the Site line.

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Zain Mehmood 4,187 Most Valuable Professional on at

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Hi Guy Terry,

I have tried it by using the same conditions, I have tried this scenario on 2 different versions on Ax 2012 R3 & D365 F&O. I got the same results as of Tayyab despite of the fact my check box was financial inventory for WH was checked or not. The only difference that I made was of creating all this on the same date. I guess moving average works in the scenario in which the date is being changed accordingly with the scenarios. Otherwise it wont count out the costs. Is that so?

Regards,

Zain

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Guy Terry 28,924 Moderator on at

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I will test it.

Out of interest, how were you determining what cost price had been assigned to the items in each Warehouse?

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Zain Mehmood 4,187 Most Valuable Professional on at

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I have checked the inventory transaction inquiry in inventory management module in AX 2012 & Transaction inquiry in cost management for D365. I also used item transactions on the documents I processed with.

Used On hand inventory for determining the cost for current inventory present.

Later on, I have used Inventory value report for both of the versions & the strange part was that the report wasn't showing the warehouse for the transaction in each case. I have setup the warehouse dimension in the parameter as well but it didn't show any.

Anyhow, all of what I was portraying in the last post was backed by the logic that when I ran the moving average revaluation for on hand it didn't give me different warehouse wise cost for adjusting. I was only able to revalue the on hand by using site dimension.

Warm Regards,

Zain.

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