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Prevent items from being available in physical inventory until PO is invoiced

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Posted on 8 Sep 2024 07:42:00 by Arabic Translation ...

Hello Community,
I need assistance with managing inventory availability in D365 F&O.

Currently, when we receive a Purchase Order (PO), the available physical increases and items become available for sale immediately. However, additional costs such as delivery charges, loading/unloading labor, etc., can increase the item’s cost price by the time the PO is invoiced. This discrepancy means the inventory is available for sale without accounting for these additional costs.
I’m looking for a way to ensure that inventory is only available for sale once the PO is invoiced, reflecting the final cost price that includes these additional charges. Is there an out-of-the-box functionality in D365 F&O to achieve this, or can you suggest an alternative approach to manage this issue effectively?
Thank you for your help!

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BillurSamdancioglu 17,153 Most Valuable Professional on 21 Sep 2024 at 19:47:15

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Prevent items from being available in physical inventory until PO is invoiced

I advise not to go with a customiation while this is a very core functionality and use the standard calculations as Saurabh has told in cost calculations.

You may alsı check Fast Track team videos for detailed cost calculations.
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saurabh bharti 15,033 Super User 2025 Season 1 on 09 Sep 2024 at 10:42:46

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Prevent items from being available in physical inventory until PO is invoiced

Hi,

I think issuing inventory at product receipt stage is not the issue if it is just about the final cost which gets posted during PO invoice.

Can you please confirm your valuation method?

but just to let you know the how system will work in this case.

Step-1: PO is received with lets say 1 QTY with 10 USD

Step-2: You sales this and your COGS gets posted with 10 USD

Step-3: Now you get PO invoice with value 15 (10 + 5 other charges)

Step-4: In month end you can run inventory recalculation process which will adjust your COGS by 5 USD

All this will work for FIFO,LIFO, Weighted average .

I have a series posted for inventory valuation , might hep you if you want to understand in detail.

https://www.youtube.com/watch?v=7aF8fye1sIQ&list=PLoW3GUbPgvmhL6hAymeh1NRx5x0XO1i70
Arabic Translation ... 62 on 09 Sep 2024 at 07:09:43

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Prevent items from being available in physical inventory until PO is invoiced

Could you please guide me on where exactly I can perform the customization? There are several processes involved in the insertion, so any specific directions or resources you can provide would be greatly appreciated.
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Bharath jain 1,067 Super User 2025 Season 1 on 09 Sep 2024 at 05:48:56

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Prevent items from being available in physical inventory until PO is invoiced

Hi,

If you’re worried about calculations, they are taken care of. Although the item is sold, after posting the PO invoice, the system will adjust the additional charges. However, if you want to know the final price before creating the sales order (restricting the item from being available for sale before the PO invoice), you may need to consider customization

Regards,

Bharath Jain
André Arnaud de Cal... 294,163 Super User 2025 Season 1 on 08 Sep 2024 at 21:24:58

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Prevent items from being available in physical inventory until PO is invoiced

Hi Arabic Translation,

Can you tell us what inventory costing type you are using for these items? In case you are using an actual method, like FIFO, LIFO, the inventory closing and adjustment feature will post corrections in case the financial cost of a purchase is different. In that case, the final cost will be recalculated anyway.
Mohamed Amine Mahmoudi 21,983 Super User 2025 Season 1 on 08 Sep 2024 at 10:28:04

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Prevent items from being available in physical inventory until PO is invoiced

Moved to finance form