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Dynamics 365 Community / Forums / Supply Chain Management forum / Inventory costing by W...
Supply Chain Management forum

Inventory costing by Warehouse

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Posted on by Hyunjin 20

Hi

Is there anyone who knows how to manage inventory costing and COGS  by warehouses

We have two warehouses. One (A) is for pick and pack, and the other (B) is for storing stocks temporarily.

I want to exclude the warehouse B for COGS. Under current setting, two warehouses are calculated for COGS.

Thank you.

Categories:
Supply Chain Management
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  • Suggested answer
    André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 301,051 Super User 2025 Season 2 on at

    Hi Hyunjin,

    If you ask if it is possible to have costing per warehouse, then this is possible by enabling the Financial check box on the storage dimension group row for the warehouse. I wonder what exactly you mean with exclude warehouse B for COGS. It will for sure have costs and thus also inventory value posted to the ledger.

  • MATTGUO Profile Picture
    MATTGUO 22,349 Moderator on at

    Hi Hyunjin,

    What is the inventory model of item?

    If FIFO or LIFO, COGS will be recalculated after closing or recalculating your inventory.

    If moving average or weighted average, physical and financial inventory need to be checked on storage dimension groups.

  • Hyunjin Profile Picture
    Hyunjin 20 on at

    Hi Andre,

    It is because of the difference of the purpose of warehouse.

    Warehouse A is for sale to customer.

    Warehouse B is for inventory keeping.

    I believe that COGS should be applied to the goods sold in warehouse A.

    That's why I want to exclude warehouse B when COGS is calculated.

    I hope this could be answer.

  • Hyunjin Profile Picture
    Hyunjin 20 on at

    We adapt FIFO, but don't have any tracking dimension at the moment.

    FIFO is just calculated based on inventory date.

  • MATTGUO Profile Picture
    MATTGUO 22,349 Moderator on at

    Hi Hyunjin,

    The FIFO method is applied only with the closing or recalculation of your inventory.

    Please make at least a recalculation of your inventory in the inventory closing form and check your transactions and your COGS again.

    You may get some more information in whitepapers which explains the costing models and the inventory closing: www.microsoft.com/.../details.aspx

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