Inventory to fixed asset journal for FIFO items

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Posted on by Ankit Batra

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When inventory to fixed asset journal is posted for an item with costing method as FIFO the expectation is that it will post the acquisition cost using the current running average of the item.

This works fine for an item of type product with no product dimension. However, when i post an inventory to fixed asset journal using a product master having color and style as product dimensions then the system picks the exact cost in FIFO sequence as if marking was done when no manual marking was specified.

See example below and check the sold cost against the fixed asset reference. It is not the average running cost but the exact cost at which the item was purchased.

Can someone please let me know if this a standard behavior or a bug? Is there a parameter which is controlling this behavior? Can this be extended to items of type product?

Thank a lot in advance.

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Ludwig Reinhard Microsoft Employee on at

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Hello Ankit,

Where do you see that the items are taken out of the inventory according to the FIFO method?

The first two purchases are made for $100/each but the issues are made for $200/each.

To me it seems more as if the serial number is the main driver of this.

Can you double check that?

Best regards,

Ludwig

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Ankit Batra 1,561 on at

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Hello Dr. Ludwig,

Please see below screenshot of the second item where costing method is FIFO. It is also serial number enabled and is tracked at site, warehouse and location level. It does not have any product dimension (color, style etc) associated with it.

For this item when inventory to fixed asset journal is posted the system picks average running cost to write-off inventory and use that as the FA acquisition cost.

Please see screenshot below. The cost is 216.75 i.e. the average running cost. I have also attached the voucher screenshot for reference.

In my first post the screenshot that I attached was for an item with FIFO costing method and serial, site, warehouse and location as storage/tracking dimensions however, it also had product dimension - style and color associated with it. Product dimension was the only difference between these two items. For this item system did not pick average running cost at the time of posting inventory to fixed asset journal but the exact cost of the purchase as if marking was applied. In reality i has not applied any marking myself. Attaching screenshots again for reference.

I would expected system to use average running cost for both the items which is also in line with another community posted you replied to. See link below.

https://community.dynamics.com/ax/f/33/t/233745

Please advise if there is any setup that is controlling this behavior which i am missing.

Thank you.

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Ankit Batra 1,561 on at

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Hello,

Would be grateful if you can share some additional insights. Please do let me know if you need any additional information.

Thank you in advance.

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Ludwig Reinhard Microsoft Employee on at

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Hi,

The difference in you screenshots seems to be the holder type and color dimensions, right?

Can you share at which level you track the financial values for those items?

In other words, what has been setup in the tracking and storage dimension group forms for both items?

Best regards,

Ludwig

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Ankit Batra 1,561 on at

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Thank you for your response.

Yes. The only difference is the product dimension between the two items.

TLNn2 is a product with no product dimensions. For this item system picks the average running cost when inventory to fixed asset journal is posted.

11n is a product master with color and style (renamed as holder type) product dimensions. For this item system picks the exact cost as if marking was applied when inventory to fixed asset journal is posted.

Both the items have same storage and tracking dimensions. Only site is financially tracked. Please see screenshots below.

Please let me know if you need more information.

Your guidance is appreciated.

thanks.

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Ankit Batra 1,561 on at

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Hello Dr Ludwig..Will really appreciate if you can share some further insights into this issue..Thank a lot.

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