To reduce inventory cost price of an item

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Posted on by NPriyanka

Hey Experts,

Is there any way out to reduce the cost price of an item from a particular month?

Our customer uses Inventory model group as weighted avg. date.

I have an item X where cost price of an item was 440 till March and from March it is 357.72 Dirhams. They wanted to revise cost price of existing stock at 357.72 dirhams per item from March.

Also, they have received credit note for the difference amount, our customer wanted to settle the credit invoice amount given by the vendor.

Month	Cost price of Item Before	Month	Cost price of Item after
JAN	440	March	357.72

Requesting to provide a solution to resolve this issue and what must be offset account to settle the invoice amount.

Any help is appreciated.

Thanks in advance.

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OsmanIstanbul 2,818 on at

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Hi

Ax does not allow to change cost for issue trans, instead you can change received trans cost that ultimately will change issue cost.

Navigate to inventory closing - adjust transaction to adjust purchased trans cost. then recalculate cost.

Best regards

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Ludwig Reinhard Microsoft Employee on at

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Hi NPiryanka,

The inventory and closing workspace can help you making those adjustments.

After you run your inventory close you can adjust prices and values as needed.

Related to your description provided I would like to know why you are using a weighted avg date valuation principle.

If I read your description then it sounds more like a fixed price that you have for a specific period.

Wouldn't a standard cost pricing valuation model fit better here?

Best regards,

Ludwig

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NPriyanka 40 on at

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Hi Ludwig,

Sorry I mentioned Inventory model as incorrect it's basically Moving average.

I am unware of the answer why they didn't choose standard cost pricing.

I tried making adjustments from closing and adjustment form, I'm not clear in following the steps.

1. When I tried fetching transactions from the adjustment -> transactions it does not show any transactions related to the item number.

2. I tried from Revaluation of moving average -> edited the unit cost price and posted but there is no impact on inventory transactions. I had ran the recalculation after updating the cost price but it still shows previous value.

Also wanted to know while posting adjustment transactions in posting form

there is field called Specifications which has three values -> Total, item number, item group.

May I know the impact of these 3 options.

Thanks & Regards,

Priyanka.

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Ludwig Reinhard Microsoft Employee on at

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Hi Piryanka,

Thanks for the update.

Moving average costing is quite different one for the others.

Yet, you can still adjust also those costs.

The following post provides you how this can be achieved.

shafeaa.blogspot.com/.../ax-2012-moving-average-costing-method_30.html

Best regards,

Ludwig

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