Physical Inventory

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Posted on by charrison700

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Hello,

We went live with AX 2012 R2 at the beginning of November, 2015. This past weekend we just processed our 2nd Physical Inventory in AX. As with our 1st Physical Inventory in AX, back in December 2015, it was a disaster. I'd like to see what others are doing with Physical Inventories in AX because it can't be as difficult as what it's been for us. There's just no way... We have to be doing something wrong. I don't want to go into all the details of what went wrong here, but if you are comfortable with processing Physical Inventories in AX using Cycle Count Journals and are willing to discuss with us how you process your Physical Inventories, please let me know.

Thanks,

Chris

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Ludwig Reinhard Microsoft Employee on at

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Hello charrison700,

Can you provide some more Detail what you refer to as physical inventory? Do you refer to the inventory close/recalculation process, a manual stock countring, etc.? It would also be great if you could provide some additional Information on the Setup of your items esp. the inventory model group used (FIFO, LIFO, ... valuation).

Many thanks,

Ludwig

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Community Member on at

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Hi Chris,

Agree with Ludwig here it would be good to know exactly the process you are using and what you refer to at 'Physical Inventories' so we can first see what's going wrong and then try and come up with a solution as to how to fix it.

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charrison700 110 on at

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OK...I will send out more information about how we do our physical and the problems we had. For now, I was just putting out a feeler to see if others are encountering problems and if not, would they be willing to discuss with us how they do their physical. Regardless, more info to come.

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charrison700 110 on at

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Thank you for the responses. Some have suggested looking into tag counting which we have not, but will since it's been recommended by a few. At a high level, our count consists of the following steps:

1.We take a snapshot of inventory

2.We create the Counting journal

3.We track inventory at a serial level, so the counters scan what serials they finda.We use a home grown software for our scanning

4.We use Atlas to update the Count/Quantity in the Counting journal with what the scanners were able to find

5.We post the Counting journal

That's about it. Now behind the scenes, we do have inventory that's reserved to Production and Sales orders and Picked on Shipments. We make attempts to account for these, but I know it's part of our flawed process that's probably making it more difficult for us. Now here's the biggest issue we're facing from our last physical that we can't figure out. We are counting our inventory out to 3 decimal places. When we post the counting journal it seems to be "validating" the inventory based upon 2 decimal places. See screen shots below. Why?

Thanks,

Chris

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Guy Terry 28,924 Moderator on at

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Hi Chris,

Do you have examples where you can see inventory in AX (e.g. on the On-hand screen) to 3 decimal places? I was under the impression (and I'm happy to be corrected) that AX will only handle inventory to 2 decimal places.

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Weaveriski 23,620 Moderator on at

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It displays everything to 2 but holds to 8 in places from memory, so if you count to 3 you will only see the displayed rounding, but eventually it will catch up. Changing it to display more and use more is the problem as many of the calculations and the processing steps in the system round to 2 as part of the process. A simple change (allegedly) that MS want you to spend months verifying although people on here have made the change.

The problem with the count seems to start being irrelevant to AX. What are you counting and where, what are the controls in place to stop movement. Where it impacts in AX is where you have WIP elements and whether you count it or not depends on how you process in AX, so if you forward flush it is gone, you cannot count it, if it is back flushed you have to count it, but can you physically count it depending upon where it is in the consumption cycle? You need to understand transformation and control this into the counting process to avoid counting 0 for something you cannot see and AX then tries to consume or counting X when AX has already consumed. You can create a massive head ache for yourself without the controls, but this is not necessarily an AX issue if you see what I mean - control is all part of the count procedure whatever system you use.

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