In my lower environment for testing, the legal entity is using FIFO, I was hoping someone could confirm logic that I'm seeing.
So when using an adjustment journal the system autofill cost with the "estimated cost" that comes from the product master in released products. This does not match the running average we see in our Inventory Value Report. After running an inventory recalculation our ledger postings for the lines in the adjustment journal reflect actual FIFO costs.
The business seems to think the journals have always pulled the running average like on the IVR, but they are used to AX2012.
1. D365 during the transaction doesn't post FIFO , it always works based on weighted average
2. FIFO gets calculated only when you run recalculation
3. Now coming to your question , in case of positive/negative adjustment like inventory journal or even sales return order there is default cost price which gets fetched. Now here is the logic for that in my understanding:
Priorty-1: It picks from item master manage cost tab cost price field > This field gets updated based on last purchase transaction posted with financial inventory e.g. PO invoice
Priort-2: If the Latest cost price is disabled in manage cost tab , it goes to the item prices in manage cost action pane tab and picks from there
But here is the catch , I will not be bothered about this price on adjustment journal when its negative adjustment because System is anyways going to calculate running weighted average during posting > Convert in FIFO in recalculation
I will be looking in to this field when there is positive adjustment because thats what system will post in inventory to increase the stock and future FIFO/ weighted average will be based on this cost. This is similar like you purchase inventory so you have to provide right cost for incoming stock
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