item cost on inventory adjustment

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Posted on by David Tailor

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Hello,

i had create a released product with Inventory model: Weighted Average Date.

Then i posted the following transactions:

Then i run closing and adjustment to update the average cost. The cost price is as per following screenshot:

When i try to make an inventory adjustment, i noticed that the cost is 4 but not 2.33!

kindly advice.

BR,

David

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P.k.Kaushik 1,031 on at

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Hello,

Please go to released products >> Manage costs section and make sure Latest cost price is un-checked

If this flag is checked as shown below, system will populate the cost price field with the latest cost price.

As per above example it is 4.

Thanks, Kaushik

This post is my own opinion and does not necessarily reflect the opinion or view of my company or Microsoft.

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David Tailor 822 on at

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Hello,

i did uncheck latest cost price in Manage Costs Fastab, then i did a purchase order with different cost of 4 USD (last cost was 7 USD), system didnt update the latest cost price there, however in inventory adjustment, i am still having the cost of 7 not the average which is now 4.6

BR,

David

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Rahul Mohta 21,032 on at

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what is the cost price expected and D365FO cost price on the date?

every date would get it's own cost price on costing model as Weighted Average Date

see if my blog helps

community.dynamics.com/.../weighted-average-and-weighted-average-dated-costing-valuation-in-microsoft-dynamics-365-finance-and-operations-one-version

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P.k.Kaushik 1,031 on at

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Hello,

The automatic updation of cost price in the Inventory adjustment journal is not dependent on whether the inventory closing / adjustment is run or not.

The average cost price as per your calculation is 4.6,

Try to make an adjustment journal with -ve quantity (-1 )

In this case, you will not have the ability to edit the cost price and cost amount, may be it will be auto defaulted to 7 as per your observation.

However if you post the journal, and review the inventory transaction. It will be issued at 4.6. ( Average of all transactions contributing to cost E.g:- Production, Purchase orders, etc. )

If the quantity is +ve (1 ), we do have the ability to change the cost price.

As we had the latest cost price check before >> please review Item price under the Manage cost action pane.

You might find some entries in the active price section, which would be responsible for the auto defaulting of cost price.

Thanks, Kaushik

This post is my own opinion and does not necessarily reflect the opinion or view of my company or Microsoft.

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David Tailor 822 on at

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Hello Kaushik,

you are right that with -ve i am not able to change the cost populated which is 7.

and i am able to change the cost if +ve, however when i post the journal D365 is not updating the real average cost, it remains 7.

BR,

David

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P.k.Kaushik 1,031 on at

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Hello David,

My Latest cost price was checked and i created the below transactions

As per the above data latest cost price is 200/10 = 20

Cost price is 19.09 in the Inventory on-hand screen

Now when i unchecked the latest cost price check box from the released product and created a adjustment journal

The system still auto defaults the cost price to 20 ( irrespective whether quantity is +ve or -ve)

However, if quantity is -ve and you post the journal and review the item transactions, you can see the issue is by 19.09 ( the average cost price )

Thanks, Kaushik

This post is my own opinion and does not necessarily reflect the opinion or view of my company or Microsoft.

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P.k.Kaushik 1,031 on at

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Hello David,

Please let us know if you have any pending questions on the automatic cost price defaulting on the inventory adjustment journal.

Thanks, Kaushik

This post is my own opinion and does not necessarily reflect the opinion or view of my company or Microsoft.

P.S:- Please mark the answer as verified if has helped you to understand the system behaviour.

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David Tailor 822 on at

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Hello Kaushrik,

thanks for your reply.

So you mean that only -ve will carry the average cost, but for +ve it will not right?

When adjusting stock usually system should keep the same cost; so i need to go to item card and check the the cost price and copy it to +ve line to keep the same cost.

BR,

David

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P.k.Kaushik 1,031 on at

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Hello David,

While posting the Inventory adjustment journal

For -ve quantity the system will always post with the average cost price at the time of issue.

For +ve quantity the system will post with the value that is keyed in in the cost price field.

You can enter a default cost price in the released product master,

Let us say, We created a new item, Mentioned the default cost price as 10.00 (Latest cost price is un-checked)

create a few PO transactions

PO 1 :- 1 @ 10

PO 2 :- 1 @ 15

Hence the on hand value of this items comes to (10+15)/2 = 12.5. (this is the cost price mentioned in the inventory on-hand screen )

Now , If we try to adjust a quantity,

If we make an entry of +1 or -1 cost price will default to 10.00 ( picks from the Released product master)

If the quantity is +ve, the inventory transaction will also be posted with the value keyed in the adjustment journal ( in our case +1 @ 10 )

If the quantity is -ve the inventory transaction will be posted with the average cost price ( in our case -1 @ 12.5 )

Thanks, Kaushik

This post is my own opinion and does not necessarily reflect the opinion or view of my company or Microsoft.

P.S:- Please mark the answer as verified if has helped you to understand the system behaviour.

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Rahul Mohta 21,032 on at

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negative qty is always based on weighted average at that point in time while

+ qty uses default cost price on item or costing version

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