web
You’re offline. This is a read only version of the page.
close
Skip to main content

Announcements

No record found.

News and Announcements icon
Community site session details

Community site session details

Session Id :
Dynamics 365 Community / Forums / Supply chain | Supply Chain Management, Commerce / Transfer order on phys...
Supply chain | Supply Chain Management, Commerce
Suggested Answer

Transfer order on physical cost

(2) ShareShare
ReportReport
Posted on by AS-27070328-0 93

Hello Experts

I have a case and would like to request your kind support in this case.

We received products from purchase orders, the used costing method is weighted average dated, by default the physical cost is registred as well.

Now usually we start to sell products and transfer them to another warehouses, when we transfer the products from warehouse to another warehouse the physical cost is not updated to the other warehouse.

The main reason of such as case due to transferring quantities without recording  purchase order invoice.

is there any feature that allow to transfer quantities including physical cost without recording purchase order invoice.

BR 

Categories:
Dynamics 365 Supply Chain Management
  • Laurens vd Tang Profile Picture
    Laurens vd Tang 5,067 Super User 2026 Season 2 on at

    Good day,

    Can you share more information about the reason/background? Why do you want to update the physical cost to the other warehouse?

    Best regards,

    Laurens van der Tang

  • AS-27070328-0 Profile Picture
    AS-27070328-0 93 on at

    Hello Laurens

    thank you for your reply.

    the main reason of recording/updating physical cost to the other Wearhouse, when we sold the items, the cost of the goods will recorded as 0.

    BR 

  • Suggested answer
    MM-29091320-0 Profile Picture
    MM-29091320-0 6 on at

    Unfortunately, it is not possible to use physical values like product receipts to recognize cost for this costing model. With Weighted average date, D365 values inventory issues, like transfers, with a running average cost until inventory close/recalculation based on the posted vendor invoices for a particular released product.

    Microsoft instead recommends using a default item cost as a fallback. This will be used until you begin posting invoices for that particular item. This will fix your issue. 

     

    Options for including physical value in cost calculations - Supply Chain Management | Dynamics 365 | Microsoft Learn

    You will notice that your initial request is not possible per the Microsoft documentation: “When you use the weighted average or weighted average date inventory model, inventory close settles only financially updated transactions, regardless of whether you select the Include physical value check box.”

  • André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 307,261 Super User 2026 Season 2 on at

    Hi,

    Can you explain your current scenario? Is your situation that you move goods from warehouse A to B where the cost amount is zero? Or is there a cost but you miss some accounting entries? Do you need to maintain an average cost per warehouse for the same item? 
    If you can clarify the exact situation, then please also share some details of your current configuration. Do you have the physical and financial option enabled for the warehouse on the storage dimension group? Is include physical value enabled on the item model group?

     

  • AS-27070328-0 Profile Picture
    AS-27070328-0 93 on at

    Hello Andre

    Thank you, 

    the current scenario is:

    1. We receive the purchase order in warehouse A with cost 1 USD.
    2. We transfer the a quantity of 2 for warehouse B, without recording the purchase order invoice.
    3. When we receive the quantity of 2 in warehouse B the physical / financial cost is null.
    4. When sell the quantity/s the physical / financial cost is still zero. even the physical cost is 1 in warehouse A.

    In storage dimension group we enabled only the physical cost, financial cost is not enabled, also “include physical value” in the item module group is not enabled, since we are using weighted average dated costing method.

    BR

  • Laurens vd Tang Profile Picture
    Laurens vd Tang 5,067 Super User 2026 Season 2 on at

    Good day,

     

    Have you already considered to configure an additional site for warehouse B? 

     

    The costs can be tracked on site level:

     

     

    Best regards,

    Laurens van der Tang

  • AS-27070328-0 Profile Picture
    AS-27070328-0 93 on at

    Hello @Laurens vd Tang

    we only have one site, and the physical cost is already considered

  • Suggested answer
    Laurens vd Tang Profile Picture
    Laurens vd Tang 5,067 Super User 2026 Season 2 on at

    Good day,

    Is it an option to introduce an additional site?

    Best regards,

    Laurens van der Tang

  • Suggested answer
    Aayush Tiwari Profile Picture
    Aayush Tiwari 431 on at

    Hello @AS-27070328-0 

    Can you please confirm that the Include physical value is enabled on Item model group or not, In case if it is marked as true, please retest given scenario after marking this option as true.  

     

    Also can you confirm with a screenshot after product receipt is posted what is the cost amount and Physical cost amount in inventory transaction for the purchase order line.

     

    Regards

    Aayush Tiwari

  • Suggested answer
    Aayush Tiwari Profile Picture
    Aayush Tiwari 431 on at

    Hello @AS-27070328-0 

     

    Is your query is resolved by the shared comments, If yes then please mark the correct answer as verified.

     

    Regards

    Aayush Tiwari 

Under review

Thank you for your reply! To ensure a great experience for everyone, your content is awaiting approval by our Community Managers. Please check back later.

Helpful resources

Quick Links

Season of Sharing Community Challenge Winners!

Congratulations to our community stars!

Women in Power Builds Momentum

Expanding mentorship, skilling, and AI innovation

Congratulations to the August Top 10 Community Leaders

These are the community rock stars!

Leaderboard > Supply chain | Supply Chain Management, Commerce

#1
André Arnaud de Calavon Profile Picture

André Arnaud de Cal... 105 Super User 2026 Season 2

#2
Aayush Tiwari Profile Picture

Aayush Tiwari 79

#3
Syed Haris Shah Profile Picture

Syed Haris Shah 71 Super User 2026 Season 2

Last 30 days Overall leaderboard

Featured topics

Quality order uses default receipt location instead of actual physical receipt location

Product updates

Dynamics 365 release plans