Purchase Price for Raw materials in Production Order

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Hi everyone,

i'm new with dynamics ax, and i'm working on production orders.

I'm trying to understad how is possible, after the production order is ENDed, to see real cost associated with the production.

Usually when you do the estimation, and you want to understand how much is your product going to cost, AX uses the prices of Raw materials that it can find in the Costing Version; but i would like to know the real total cost of production, based on prices associated with invoice that i've registered for the raw materials that i've purchased.

Hope i was clear in the description :)

thank you for your help,

Antonio

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Brandon Wiese 17,788 on at

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RE: Purchase Price for Raw materials in Production Order

It sounds like you want to understand Inventory recalculation, assuming you're on an actual cost model like FIFO or some weighted average. Inventory recalculation re-flows the costs from purchase orders through production orders and into sales orders (from receipts to issues).

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RE: Purchase Price for Raw materials in Production Order

So i didnt get it :) how (and where) i should set all of these?

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Richard Wehmeyer 1,004 on at

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RE: Purchase Price for Raw materials in Production Order

This is set up via your inventory model which is specified on the Item model group. With the exception of standard cost (items are given a specified cost independent from purchase or sales price) items will get invoice cost. Marking and tracking dimentions will help guide, for a given item, which purchase transaction is to be used for a consumption transaction. If you have four purchase orders and then one production order you must specify either by inventory model, marking or tracking dimention which purchase order your production takes $ from.

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Richard Wehmeyer 1,004 on at

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RE: Purchase Price for Raw materials in Production Order

To be direct: Set an item model group for raw material that uses FIFO or LIFO, create raw materials using this item model group.

As far as I know you cannot change this once you have transactions on the item.

Note: when using FIFO/LIFO counting an item in is a purchase transaction for which there is a $0 cost.

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Community Member on at

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RE: Purchase Price for Raw materials in Production Order

When you consume the material against that production order, system uses the actual cost of that particular items.

The cost would depends on the costing method (model group) defined on the item.

Once you end the production order and see the transactions, you would find the actual raw material cost.

You might further require to run Inventory Recalculation or inventory closing on periodic basis to get the exact cost.

Hope this helps.

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Community Member on at

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RE: Purchase Price for Raw materials in Production Order

Thank you guys :D Amazing replies.. you really save my day :) just the last question:

let's say that i've produced an item through a production order, and that i've estimated the overall cost of that item.

Now i'm selling the item through a sale order, and when i run the cost calculation based on BOM/Formula, AX gives me an overall cost that is 0.

So stupid question is, how (from the sales order form) i can see the real cost of an item that i've produced?

Thank you very much for your help,

Antonio

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