Incorrect cost value in Inventory transactions

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Posted on by Community Member Microsoft Employee

Hello experts,

we have come across some strange cost values for an item who has been sold and then returned. The transactions are carried in different warehouses, all in the month of august.

While the usual cost per unit of this item varies from 31 to 66, the strange values are 313.05, 5733.45 and 6032.17.

Recalculation of inventory has been done for august and has posted only two adjustments in these "strange" records, but either way the cost is still too high.

The cost amount in sales is equal to the cost amount in returns, as shown below. Prior transactions in these warehouses have normal values.

40757.Capture.PNG

In this image I have filtered only the faulty transactions.

How can we fix these values? And how can we avoid this from happening again?

Thank you,

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Guy Terry 28,621 Super User 2024 Season 2 on at

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RE: Incorrect cost value in Inventory transactions

Hi,

Thanks for the info; just what I wanted. And I retract my previous statement about 'it'll all be alright in the end'!

If I look at the Unit cost of each Inventory transaction (that is, the Cost amount divided by the Quantity), the transactions you list do appear to be the 'most faulty'. And they all appear to be caused by negative sales order line (perhaps a Customer return order).

For example, on Sales order SO069029, you receive 1,000 of the item in to Warehouse FM37 with a unit price of 5,733.45. This cost is assigned, by the FIFO model, to Sales order SO069255, where you ship out 1,000 of the item from the same Warehouse.

I would investigate these return orders, or negative sales order lines. Has a manual cost price been entered?

You even have an earlier example which is not in your list. 100 Kgs of the item were received on Sales order SO033458, with a unit price of 159.22.
Community Member Microsoft Employee on at

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RE: Incorrect cost value in Inventory transactions

Hi Guy,

here are the screenshots for the Storage and Tracking Dimension groups of the item:

thank you,

Irida
Guy Terry 28,621 Super User 2024 Season 2 on at

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RE: Incorrect cost value in Inventory transactions

Hi Irida,

If you carry on Invoicing your purchase orders (or ending your production orders, if the item is a manufactured item) and running monthly Inventory close, I expect AX will tidy up these unusally large cost amounts as a matter of course.

However, the Excel you provided might also hold some answers... but can you tell us which lines on the Item's Storage and Tracking dimension groups are both Active and have Financial inventory ticked?
Community Member Microsoft Employee on at

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RE: Incorrect cost value in Inventory transactions

Hello MAATGUO,

yes, physical and financial negative quantity is allowed for the item.

I am trying to understand the change of cost and how to adjust it, that's why I posted the issue in the forum.

Thanks,

Irida
MATTGUO 22,306 on at

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RE: Incorrect cost value in Inventory transactions

Hello,

Does the item allow the negative quantity for physical?

I check the transaction, it seem that the cost of the transfer order is very high, and then it happens to many adjustments, could you please check the reason for the cost change of transfer order?
Community Member Microsoft Employee on at

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RE: Incorrect cost value in Inventory transactions

Hi Ludwig,

We are operating on AX 2012 R3. Valuation method is FIFO.

There are different cost prices for several warehouses, but for none of the ones with the problem.

In the answer above I have included an excel file with all the transactions of the item, if it helps somehow.

Thanks,

Irida
Community Member Microsoft Employee on at

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RE: Incorrect cost value in Inventory transactions

Hi Zain,

We are using FIFO. The item is bought in a central warehouse, transferred in several other warehouses and then sold.

If it is easier for you, I have attached here all the transactions of the item.

MI015.xlsx

We cannot perform inventory closing at the moment because there are still some transactions to be made for other items.

Thanks,

Irida
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Ludwig Reinhard Microsoft Employee on at

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RE: Incorrect cost value in Inventory transactions

Hi,

Are you operating an older AX2012 system?

If so, have a look at LCS for available hotfixes.

Can you also provide us more details about your item configuration and valuation, e.g. what valuation method is used, whether you have specified different cost prices for different sites, etc.

Many thanks

Ludwig
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Zain Mehmood 2,715 on at

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RE: Incorrect cost value in Inventory transactions

Hi Irida,

Which inventory costing method are you using? and also can you tell me about the bulk purchase inventory transaction of the item.

Because all i can see in this picture is sale issue/return transactions. There may be a transaction from purchase order or Production order etc

Also try running inventory closing, inventory closing is always preferred on inventory recalculations.

Regards,

Zain