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Microsoft Dynamics AX (Archived)

Inventory transfer journal does not adjust cost amount after inventory recalculation

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Posted on by Tung Duong 240

Hi all,

I've had some inventory transfer journals in the month and by the end of the month, I did an inventory recalculation to adjust the actual inventory cost for item transactions in the month. The inventory cost is actually adjusted, however not in the posted transfer journal lines. The cost amount is still the same with values before recalculation. I have a screenshot here for better clarification: 

12_2D00_1_2D00_2015-10_2D00_16_2D00_05-AM.jpg

12_2D00_1_2D00_2015-10_2D00_16_2D00_22-AM.jpg

Anyone knows how I can track the cost adjustment in inventory transfer journals like this? Thank you in advance.

*This post is locked for comments

  • Tung Duong Profile Picture
    Tung Duong 240 on at
    RE: Inventory transfer journal does not adjust cost amount after inventory recalculation

    Hi Guy,

    I've tested on a different transfer journal for an item from a warehouse to another warehouse, each of which is financially specific. The check box 'Non-financial transfer' was now unchecked, and the cost amount of the transfer was adjusted as well when I did a recalculation for this item.

    However, the automatic ignorance of non-financial transfers in the inventory close & recalculation procedure makes it difficult to track the actual cost amount of items transferred between inventory dimensions even when they are not financially specified, I think. That's the purpose of my question in the first place.

    Anyway, thanks for your explanation, now I understand the logic behind this. Much appreciated!

    Regards,

    Tung Duong.

  • Suggested answer
    Satya Kejriwal Profile Picture
    Satya Kejriwal 210 User Group Leader on at
    RE: Inventory transfer journal does not adjust cost amount after inventory recalculation

    Hi Tung & Guy,

    Appreciate the question and Guy's reply on this. I agree with this reply.

    I just like to add here that as per my experience we should always enable this option of 'Activate closing of non-financial transfer'.

    If we don't enable it then the receipt side of the transfer is considered in the calculation of the average of the month, but the issue is not updated with the average. So, in one of our transaction, the transfer price was valued at a very high amount due to some wrong on-hand that time, so impacted the whole average of the month, hence it increased the cost of sales exorbitantly.

    And if we enable this option, then the whole transfer journal transaction is ignored for any calculation which makes sense. 

    In the latest version (R3), this option has been introduced as pre-closing, I guess. 

  • Verified answer
    Guy Terry Profile Picture
    Guy Terry 28,621 Super User 2024 Season 2 on at
    RE: Inventory transfer journal does not adjust cost amount after inventory recalculation

    Hi Tung,

    My take on it is this. The transfer was between inventory dimensions that are not enabled for 'Financial inventory'. This means the transfer has no effect on the cost of the item. This is sometimes known as a 'non-financial transfer'.

    Depending on what version of AX 2012 you have, you may find the parameter 'Activate closing of non-financial transfers' at 'Inventory management' -> Setup -> Inventory management parameters -> General tab. But in later versions of AX 2012, this parameter is removed and AX behaves as if it is always ticked.

    The effect of the parameter is to ensure that inventory transactions which are 'non-financial transfers' are ignored by Inventory close. These transactions will be closed before Inventory close is run.

    I don't think there is anything you should do. AX is behaving as it should. There is no point revaluing these transactions, because they have no affect on inventory value.

  • Tung Duong Profile Picture
    Tung Duong 240 on at
    RE: Inventory transfer journal does not adjust cost amount after inventory recalculation

    Hi Guy,

    I've had this item transferred from one location to another location in the same warehouse and same site. I also had this item's storage dimension group financially specific to the warehouse level:

    12_2D00_1_2D00_2015-4_2D00_47_2D00_02-PM.jpg

    Does this give any idea about what I should do?

  • Guy Terry Profile Picture
    Guy Terry 28,621 Super User 2024 Season 2 on at
    RE: Inventory transfer journal does not adjust cost amount after inventory recalculation

    Hi Tung,

    Where was the item transferred from/to? i.e. Was it to transfer an item from a location in a warehouse to another location in the same warehouse. Was it to transfer an item from one site to another?

  • Tung Duong Profile Picture
    Tung Duong 240 on at
    RE: Inventory transfer journal does not adjust cost amount after inventory recalculation

    Hi Ludwig,

    Thanks for your suggestion. I've checked the line status and it was closed, since I ran the inventory recalculation which passed the date the transaction was made. The inventory cost for the item was adjusted, but the transfer line was financially closed without any adjustment. Can you please explain more about this?

    Thank you.

  • lally Profile Picture
    lally 19,790 on at
    RE: Inventory transfer journal does not adjust cost amount after inventory recalculation

    Hi All ,

    Can we adjust the inventory Qty also in the Inventory close form ? If yes .. please guide the path .

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Inventory transfer journal does not adjust cost amount after inventory recalculation

    Hi Tung, can you check the status of your inventory transfer lines? Do they have the status open or closed? If they ate closed AX won't make any adjustment in a later inventory close/ recalculation.

    Hope it helps,

    Ludwig

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