Potential Conflicts - inventory and general ledger report

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Posted on by Community Member Microsoft Employee

Dear All,

I am running potential conflict report, report shows some difference of however for difference highlighted in report only 3 types of comments is being repeated.

For inventory section on report comment I can see is only-

1) The posting type for Price difference for moving average has been posted to the main account that represents inventory

For General Ledger section on reports there are 2 types of comment for differences

1) A Posting with un-authorized posting type relating to another module has occurred on this main account representing inventory will cause imbalance.

2) Direct postings to this main account representing inventory will cause imbalance

My question what are the resolution for these comment.

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Shabir Ahmad 3,024 on at

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RE: Potential Conflicts - inventory and general ledger report

Hi Finance Consultant,

It would better, you should at least share the solution the same problem is here with me. This is a common issue. In comment section i am also facing this warning

1) A Posting with un-authorized posting type relating to another module has occurred on this main account representing inventory will cause imbalance.

If anyone knows, please update here. So that in future it will guide new users.

Best Regards,

Shabir Ahmad
guk1964 10,877 on at

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RE: Potential Conflicts - inventory and general ledger report

I m not saying you cannot bac date I am saying you should not or you will get issues.

Why are you concerned about a variance? In a fast moving environment the inventory moves quickly. If its a problem, then you should not use this cost method.

Ask yourself what different decision you will make when you do, or don't have a variance.

also whether it is materially significant or happening often in which case, if these are materially significant then address the operational process to get timely bookings.
Umair Zafar 115 on at

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RE: Potential Conflicts - inventory and general ledger report

Dear Gents,

Can i have resolution please i have also variance
Ludwig Reinhard Microsoft Employee on at

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RE: Potential Conflicts - inventory and general ledger report

Hello Finance Consultant,

Many thanks for your update and sharing it with the community.

Would be great if you could share a link to your website/post also here.

Many thanks,

Ludwig
Community Member Microsoft Employee on at

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RE: Potential Conflicts - inventory and general ledger report

I have resolved this issue and now my balance is reconciled for 31.12.2018 and even I can post in past. I am writing blog as to how I did it. I will share here with you.
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guk1964 10,877 on at

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RE: Potential Conflicts - inventory and general ledger report

You can't post in the past. with Moving average everything is settled immediately there is no month end process to readjust transactions. Moving average is a pure, perpetual, weighted average,

When you use items that are associated with the moving average model, for the assignment of costs:

 Issues are always assigned a moving average cost.

 You cannot associate costs, with specific receipt transactions.

The concept of marking does not apply.

Adjustments occur in real time. IC does not adjust the transactions nor can you do any standard adjustment in the Inventory closing form for items that are Moving average. The inventory close process only closes the accounting period,

A revaluation can be posted at any time as a manual process.

To quote from Docs:

If you need to adjust the moving average cost of a product, inventory adjustments are allowed as of today’s date. You cannot backdate an inventory adjustment to correct the moving average cost of a product. You cannot have the cost flow through subsequent transactions.

1.Select the product for which to adjust the moving average cost .

The Revaluation for moving average form examines the inventory available for a product.

The product selected has a posted quantity of 1, a posted a value of 12.00, a posted unit cost of 12.00, and a unit cost of 12.00.

2.Now update the unit cost field to 16.00. The system calculates the remaining fields.

In the Settlements for voucher form, you will see an adjustment of 4.00 posted to the Cost revaluation for moving average account.

3.The adjustment is posted.

Note. You can only adjust the moving average cost as of today’s date.
Community Member Microsoft Employee on at

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RE: Potential Conflicts - inventory and general ledger report

Thank you for detail reply. Let me explain you the exact scenario which has cause the errors.

Valuation method we are following is moving average

1) We posted opening balances of inventory through inventory adjustments date (31.Dec.2018). However after few days suppose 20 Jan 2019 we came to know by client audit team that there were few items which we posted through inventory adjustment need to reverse due to xyz reason so we made negative inventory adjustment for same date (31.12.2018) of those item which need reversal now problem when we made negative adjustment AX do not allow us to edit price and there was a difference in price at the time of opening inventory were posted and price when we were making reverse adjustment.

Let me illustrate it by example

We posted an inventory adjustment for opening balances for item A on 31.12.2018(Item A had a price of 12 and qty 515.70 so total cost amount posted was 6,188.40)

When we made reverse (negative) inventory adjustment 31.12.2018 (Item A had a price in AX 14.5 qty 515.70) so there was a difference of (14.5-12=2.5) now when we posted this transaction system has made an adjustment of difference of (2.5x515.70=1289.25) and posted this difference to main inventory account instead of price difference for moving average account that's why i am getting this error (The posting type for Price difference for moving average has been posted to the main account that represents inventory).

Now how should I revert the adjustment posted to inventory main account of 1289.25 and post it to difference for moving average account.
Community Member Microsoft Employee on at

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RE: Potential Conflicts - inventory and general ledger report

Thanks for the reply. It has difference
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guk1964 10,877 on at

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RE: Potential Conflicts - inventory and general ledger report

1) The posting type for Price difference for moving average has been posted to the main account that represents inventory

This tells you that you have used the inventory main account for posting a price difference- so you should define a separate account for price difference and move the value difference between the accounts and update your posting profiles. With moving average, the product’s cost is determined by the purchase receipt. When the purchase invoice is subsequently posted, and there is a difference in cost between the purchase receipt and the purchase invoice, the difference is proportionally adjusted to the current products in stock, and any remaining amount is expensed. In this example, a purchase order is created and received at one cost, and the purchase invoice is posted with a different cost.

Purchase order quantity of 2 and unit price of 10.00.

Purchase receipt of the product.

Purchase invoice for the quantity of 2 is entered with a unit price of 12.00.

The difference in unit price, 2.00, is posted to the Price difference for moving average account when the purchase invoice is posted.

The reason is that two products were purchased for a cost of 20.00. If one of the products was sold for a unit price of 10.00. and the purchase invoice was posted at a unit price of 12.00 with a quantity of 2 then the unit price of the second piece cannot be posted at 14.00. Hence the difference should go to a variance account not back to the main inventory account.

For General Ledger section on reports:

1) A Posting with un-authorized posting type relating to another module has occurred on this main account representing inventory will cause imbalance.

You have defined Posting types against each account for what types of posting are allowed to that account, and the account appears to have been wrongly selected for a transaction that is not related to inventory transaction https://docs.microsoft.com/en-us/dynamicsax-2012//transaction-posting-definitions-form

2) Direct postings to this main account representing inventory will cause imbalance - someone has posted to the inventory account in the GL with a manual journal rather than the posting coming from the inventory sub master. That transaction should be reversed. Any adjustment needs to be done in the sub ledger, or via separate non inventory adjustment account. Sub ledger accounts should be locked to prevent manual posting that create such reconciliation issues = Ludwig has provided a recent comment on this on another forum thread for which you can search/

So you now have to do some digging into your accounts, inventory posting profile set ups, and transactions, or contract with a finance consultant to assist you.
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Ludwig Reinhard Microsoft Employee on at

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RE: Potential Conflicts - inventory and general ledger report

Hello Finance Consultant,

The report shows you 'potential' issues.

Does your GL inventory balance tie to the one in the inventory module or do you have a variance?

Best regards,

Ludwig