Why there is a cost value calculate during sales order?

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Good Morning everyone,

I would like to ask? regarding of wrong cost value calculated during sales order without any item description only quantity(1), but still there is a cost value calculated?

After sales invoice posted , cost value (consumption posting type) appeared on the debit side of financial transaction,

Please help me regarding of this concern.

Thanks,

Christine

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Ludwig Reinhard Microsoft Employee on at

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Hi Christine,

Ax uses a temporary cost price when it posts the sales order. This price is modified in line with the costing principle used (Fifo, Lifo,etc.) When you run an inventory close or inventory recalculation.

You can find more information about the temporary price - which is similar to a running average price - on the MS docs sites and in various threads that have been posted in this forum.

Best regards

Ludwig

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Hi Ludwig,

Thank you for respond, we can't run inventory close for now because of pending posting transaction. I would like to ask? what is possible way to avoid cost value(consumption) appeared on Trial Balance ?

Please help me for my concern

Thank you,

Christine

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Good afternoon Ludwig,

This is problem screenshot

cost value calculate even without sales description, this cost value came from previous active price set-up(second screenshot)

I try to zero out the active price stated but still the cost value appeared.

How to correct it? the cost value should be zero during sales order.

Please help me to resolve this problem?

Thanks,

Christine

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Ludwig Reinhard Microsoft Employee on at

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Hello Christine,

There are basically two ways how you could avoid that the COGS are posted. First, by setting up ledger accounts in the inventory posting matrix that debit and credit each other. Second by setting up an item model group that does not create those inventory postings.

Both setups should be done right from the beginning. That is, if you already have item transactions recorded, changing those setups will do more bad than good.

Why is it that you don't want to have the COGS posted?

Best regards

Ludwig

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Ludwig Reinhard Microsoft Employee on at

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Hello Christine,

I just saw your screenshots that loaded slowly.

From those screenshots I can identify that you use a standard cost item with a cost price of $13 that causes the inventory cost posting.

When using standard costs you cannot avoid the inventory posting but can only try setting up your accounts in a way that they debit and credit each other.

Yet, this is something one typically does not want to have when using standard costs.

Before making any change I would recommend that you have a talk with your inventory experts why they setup the product with a standard costing model. There must have been a reason why this specific setup has been made.

Best regards

Ludwig

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I can't change the item group set-up for sales, because of existing transaction.

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Ludwig Reinhard Microsoft Employee on at

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Hi Christine,

Right, you cannot do that in the AX client yourself but a developer could do that.

Alternatively, you can setup new items.

Before even trying to realize those modifications talk to your inventory and admin people because as I mentioned there must be a reason why a standard cost model was used.

Best regards,

Ludwig

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