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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / Change of inventory mo...
Finance | Project Operations, Human Resources, ...
Suggested Answer

Change of inventory model (FIFO -> Weighted Average)

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Posted on by Dexin 452

Guys,

I would like to confirm, can AX allow to simple change of item model?

I found that initially an item had set to FIFO costing but user can simply change to weighted average without information. Even thought inventory transaction exist to the item.

Don't the system will prompt and block from changing once the inventory transaction exist to the item?

Does it means once changed to weighted average, system will recalculate base on weighted average?

6136.item-model-group.png 

Appreciate someone can explain on this

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

    Hi Dexin,

    Do you have transactions recorded already?

    If you have and if you want to change your inventory model then you might have to reverse all prior inventory recalculations/closures, change the valuation model and run the recalculations/closures again.

    Otherwise, you might incorrectly valued stocked data.

    The difference might not be much especially if your inventory levels are currently low but still.

    That can include a lot of work.

    An alternative would be to create new items with a weighted average valuation but that might also create a lot of work.

    Simply changing the model as you go might work but the values that you get might not be consistent. If you plan doing that, double check with your finance and auditing colleagues first.

    Best regards,

    Ludwig

  • Suggested answer
    Junaid Idrees Profile Picture
    Junaid Idrees on at

    hi Dexin,

    I dont have AX 2012 environment right now but I do remember this was an issue in AX 2012 that you can go and change inventory valuation method even if there are transaction posted to it and that was causing serious issue in costing. A quick fix would be to revoke the rights of item model screen from all users and assign the access right to power user in finance.

    In D365 FO system doesn't allow to change inventory model if any transaction exists to an item and it is shoudn't allow actually.

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