Consumption in SO invoice AX 2012 FIFO

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Posted on by inadir

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Some SO that we invoiced,the COG don't balance with the input (PO).

i bought the item with 100$ for exemple , but when i sell it and I invoice the sales order, the cost of the product is not good.

i use FIFO as a model.

but when I close my stock , all things is good.

i want to know how i can fix that issue !

Appreciate your help.

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Guy Terry 28,924 Moderator on at

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Hi inadir,

What you describe is how AX handles cost with all of the inventory models that use inventory closing.

Do you have 'Include physical value' ticked on the inventory model group?

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jgracak on at

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Hi inadir,

That happens because AX calculates a running average with all inventory models that use inventory closing. Your cost on SO will be the running average up to that point. The average can vary depending on if you checked "Include physical value" as Guy Terry said. It means that it will use physically updated inventory also in the running average calculation.

Once you close the inventory the system will settle the transactions using the inventory model group on your items. In your case that is FIFO and that is why you see the correct cost price after closing.

Kind regards,

Josip

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Weaveriski 23,620 Moderator on at

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You could run the recalculation daily.

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André Arnaud de Cal... 301,231 Super User 2025 Season 2 on at

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Hi inadir,

As mentioned above this is the way AX is posting and recalculating the inventory.

You can download the Cost management whitepaper to get more understanding how AX handles this. www.microsoft.com/.../details.aspx

This whitepaper was written for AX2009, but is still valid.

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inadir 400 on at

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yes , i do it...

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inadir 400 on at

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Thank you very much for your responses.

I set a batch to calculate the inventory every day ,but for me this is not a perfect solution.

I want AX validates the correct amount during the billing / invoicing SO or PO.

i found a hotfix "View CustInvoiceTransExpanded Cost of Goods Sold (COGS) amount is not calculated correctly" but i dont know if it works, i will try it later.

thank very much for your Help :)

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Weaveriski 23,620 Moderator on at

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No it does not work that way unless you standard cost - it has to calculate it based upon the costing rules - if it had to calculate it at the time of posting there would be performance issues which is why they altered this. You would need to customize the routine to calculate it based upon posting.

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Guy Terry 28,924 Moderator on at

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Hi inadir,

CustInvoiceTransExpanded is a view that is the basis of the Sales cube in the AX BI solution. That hotfix is to solve a problem where the cost of Sales order returns (i.e. credits) in the sales cube has the wrong sign.

You want AX to use the 'correct' cost when the SO is invoiced? But what if the SO is invoiced before PO is invoiced. The 'correct' cost could change. I assume you want the invoicing of the PO to update the cost of the SO? Sorry, AX does not do this. But if you are running a recalculate every night, it will make the adjustment at this time.

Oh, and there is a third party product that does real time costing.

www.fsbdev.com/inventory-ii.aspx

I can't recommend it or comment on it, since I have never implemented it.

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