Cost Price In movement Journal

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I am using weighted average item model Group.

In Microsoft dynamics AX 2012 when I create inventory movement journal, I want the Cost price to be automatically populated as the average cost of the item. Currently the cost price appearing in movement journal is zero. The behavior is as i desire when i use moving averages. I want the cost to automatically populate in case of weighted average

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Ludwig Reinhard Microsoft Employee on at

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Hi Bilal Yaqub,

By setting up a cost price in the item master the cost price that you setup there automatically defaults in your journal. This cost price is, however, not the running average cost price. If you want to have the running average cost price defaulting you would need to make an adjustment for that. Yet, I cannot see any value added by making such an adjustment as the running average price is taken anyway for making the posting. The issue is thus only what is displayed in the journal and to get this right I would suggest that you setup a cost price at the item master level.

Best regards,

Ludwig

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Community Member on at

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Thank You Ludwig

I do not want to use the price from item form, my requirement is to populate average cost directly in movement journal form. I am ok if it is not populated In my case When I post the journal the journal is posted in zero cost instead of average cost. (Screenshots are attached)

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Ludwig Reinhard Microsoft Employee on at

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Hi Bilal Yaqub,

I got your point and saw this issue already several times.

The best way to avoid this is entering a price at the item master - as I mentioned above.

You can of course try to tweak around with the code.

Yet, this can quickly get complex and the value added from such an adjustment is close to zero in my opinion.

Your issue seems rather that there should be no posting with a 0.00 price, which can simply be avoided by the price setup mentioned.

Also consider that the average price is used for issue transactions only.

For receipt transactions you might not want to have it all the time if you need to make adjustments / corrections.

Probably do some additional testings in a demo/test system to verify whether the benefits of making such a modification justify the costs related.

Best regards,

Ludwig

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Weaveriski 23,620 Moderator on at

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If AX knows the cost, depending upon configuration and costing method it will populate it - the question should be why is it populating zero. Create a new item, book it in, invoice it and then validate it appears on a movement journal. If zero document the costing method the item has (unless it is the same as your requirement and weighted average of course!) and ensure all financially relevant product dimensions align.

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Prashant Singh 8,802 on at

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Dear Bilal,

The system behavior you are looking for is only possible with standard cost item model group. Where you fix the cost of the item either you make issue or receipt transaction cost is fix.

But when it comes to WA there is no fix cost for the item each transaction of receipt may change the current running average.

But if you will make issue transaction means negative qty transaction system will take running average cost.

Regards,

Prashant Kumar

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Sheriffff 35 on at

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For this, enable the check box of 'Latest cost price' on the products setup which having Weighted Average item model group.

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guk1964 10,888 on at

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Your running average cost is changing all of the time and its not settled until inventory close.

If you have zero quantity. then what is the average value? Its zero. So if you add back inventory, then the system has to get value from somewhere and as mentioned above that it the item master price. Some users update that with last purchase price as also mentioned. That is convenient and sensible when you have a stable cost and buy regularly. If you buy infrequently, or at significantly varying costs then weighted average is in nay case not the right choice. If the price is stable and your buy to sell cycle is not overlong then last purchase price and weighted average should be close enough to not be materially significant for the odd adjustment transaction to matter..

An approach to consider is that after your inventory close, extract the updated average price, and then reimport it to the item master as the default price for the new period. However, if you have zero in hand at that point the average will be zero - so you might want o check for zeros and update those manually.

Similarly if you use this approach, then you can check this period's update template with the prior period to look for major discrepancies that you might need to manually override.

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88X74 35 on at

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Have you tried checking the inventory policies for weight average method? If the checkbox for negative physical inventory is checked then, your cost will not show until you write quantity as negative.

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