Intercompany revenue and COGs posting discrepancy

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Posted on by gtipler

Hello all,

coming across a peculiar problem with inter-company sales order postings that I hope this group can help with. When creating an inter-company order with the "unit price equal to cost price" parameter set to TRUE, the revenue and COGS postings to do not align. It looks like the revenue is being calculated by rounding the cost price for the item to 2 d.p, assigning to the unit price and then multiplying by the quantity on the line receive the total amount. However, the COGS is multiplying the raw cost value by the quantity and then rounding the total. This is causing penny differences between them per item (as shown below), which with large line quantities results in significant recognition of intercompany profits.

Has anyone else encountered this before/know how to resolve it. Many thanks in advance.

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ngprz 2 on at

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Intercompany revenue and COGs posting discrepancy

Hi, gtipler. Have you had a response from Microsoft on the ticket that you raised?
gtipler 5 on at

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RE: Intercompany revenue and COGs posting discrepancy

Hi André, thanks for the reply. I would think that this would affect any company that uses an average costing method (weighted average, moving average, etc) and unit price equal to cost, as the calculated average cost could easily be calculated to more than 2 d.p when the purchase price changes unless the purchase prices are round amounts.

I've raised a ticket with MS to dive into the standard a little deeper. I'll update this ticket with more information when I receive it.
André Arnaud de Cal... 294,141 Super User 2025 Season 1 on at

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RE: Intercompany revenue and COGs posting discrepancy

Hi Gregg,

I'm able to understand your problem now. Thanks for the clarification. I think your scenario is quite rare to have the unit price equal to cost and inventory cost not directly rounded with two decimals. The combination is the troublemaker. I would suggest creating a ticket for Microsoft Support and mention as version 10.0.32 (or higher).
gtipler 5 on at

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RE: Intercompany revenue and COGs posting discrepancy

Hi André, apologies let me elaborate on the scenario. (For record I have also replicated this scenario in D365 10.0.32 so it is still part of the standard design. It just seems like poor behaviour in my opinion and I'm surprised to not find more questions related to it online).

We have goods with a weighted average date cost price in EUR that we sell intercompany and do not want to make profit from. Therefore the "Unit price equal to cost price" parameter is set to true in the intercompany relationship setup. When raising the sales line the unit price remains blank (as expected from standard behaviour) until the goods are dispatched/invoiced, at which point it appears that D365/AX is taking the current unit cost, rounding it to 2 decimal places and adding to the sales line as the unit price. This is then multiplied by the quantity to get the total line amount.

When looking at the invoice voucher for this line, the postings for posting types "Customer Balance" and "Sales order revenue" match the line amount on the sales order line (as expected), but there are differences between these postings and the postings for posting types "Sales order consumption" and "Sales order issue".

It appears that the amounts for the COGs postings are calculated with the unit cost at the fully number of decimal places multiplied by the line quantity, and then only rounded to 2 decimal places at the end. For orders with large line quantities this can cause significant differences between the revenue and COGs postings so that profit is being recognised on the intercompany transaction.

Does this make it clearer? Thanks in advance
André Arnaud de Cal... 294,141 Super User 2025 Season 1 on at

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RE: Intercompany revenue and COGs posting discrepancy

Moved the question to the Dynamics AX forum as the screenshot indicates this is an AX 2012 related question.

Hi Gregg,

You shared a screenshot with voucher transactions, but I don't know what line represents what posting type. Can you share some screenshots from the order details and inventory transactions?