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Finance | Project Operations, Human Resources, ...
Answered

Sales order cost increase

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Posted on by 15

Hi 

I have an issue where the unit cost was $1.51 when a sales order was processed but the unit cost has jumped to $2.14.

I am using Microsoft Dyanmics AX 2012. We use weighted average costs.

Not sure where to go to check what is causing this any help is greatly appreciated.

Thanks

Here is an image of the change is unit cost

sales-order-cost-increase.PNG

I have the same question (0)
  • Verified answer
    André Arnaud de Calavon Profile Picture
    301,035 Super User 2025 Season 2 on at

    Hi WillR,

    It is impossible to give you the cause on this forum. There can be multiple reasons. Are these all transactions related to this item or is it just a subset to show that there was a change in the unit cost price?

    It can be caused by various purchases, negative physical inventory at a certain moment and possibly also a combination of settings and the use of the inventory closing or not using it at all. Also, the settings on the storage dimension groups can influence the cost to have it e.g. per warehouse or only on site level. Your screenshot is not showing these details.

    Some documentation how the inventory cost accounting is working can be found online: docs.microsoft.com/.../about-running-average-cost-price (see also related pages using the menu).

    If you need to find the real cause, it would be recommended to hire a consultant who is experienced with the inventory transactions, its behavior and troubleshooting skills. It requires a deep dive in all the transactions, the cost settlements and adjustments (inventory closing).

  • Verified answer
    jannawangD365 Profile Picture
    on at

    Hi Willr,

    You need to firstly make sure you have run inventory closing and the sales order are fully settled. then cost is final determined. Otherwise, the current cost price is not  accurate.

  • willr Profile Picture
    15 on at

    Thanks will look for an inventory consultant to engage

  • willr Profile Picture
    15 on at

    Thanks for the advise

  • Guy Terry Profile Picture
    28,924 Moderator on at

    Hi willr,

    On the item's Item model group, I understand you are using Inventory model = Weighted average. Is Include physical value ticked?

    On the Storage and Tracking dimension groups for the item, can you tell me which lines have both Active and Financial inventory ticked?

    Then can you redo the screenshot of the transactions, including any dimensions with have both Active and Financial inventory ticked (but only those dimensions)? Also, I guess your screenshot is showing the Cost amount from the Overview tab of the transactions inquiry. Can you also include, from the Update tab, the Financial > Cost amount and Adjustment fields? You can personalise them on to the Overview tab before you do your export to Excel.

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