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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / FIFO method working li...
Microsoft Dynamics AX (Archived)

FIFO method working like Weighted average method

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Posted on by Community Member

Hi all,

We have configured item model group as FIFO but after performing transactions of purchase and sales, it is showing behavior of weighted average method for inventory transaction. Please let me know if something is missed in setups of inventory and warehouse management.

Thanks,

Yumna,

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  • Verified answer
    André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 301,210 Super User 2025 Season 2 on at

    Hi Yumna,

    During the transactions indeed an average will be used for the cost amounts. During the recalculation and closing (periodic option) the FIFO value model (or whatever is setup) will be used and transactions will be corrected. Best practice is to use this task every period end, but if you have a large number of transactions, you can also consider to run it more frequent.

    You can read all in this whitepaper: www.microsoft.com/.../details.aspx.

    The whitepaper is written for AX2009 but also applies for AX2012.

    Note that AX2012 has a new inventory model "weighted average" which is not described in this document. Another whitepaper describes this mehtod.

  • Community Member Profile Picture
    Community Member on at

    Hi André Arnaud de Calavon,

    thanks for the quick response ... and yes this is working than u again...

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