Dynamics Community Forum Thread Details

Item cost price has been posted wrongly to price difference account

Issue Description:
For one Purchase Order# PO000021798, an unusually large amount was posted to the Price Difference account instead of updating the cost price in inventory, as a standard process.

Item: PNPC0006
Item Model Group: Moving Average
Configured Cost Price: 40.50 AED
PO Line Price: 53.00 AED

The item is set up with the "Latest cost price" option enabled, so upon invoice posting, the new cost price should have been updated in inventory. However, in this case, it was not, and the price difference was incorrectly posted to the Price Difference account—indicating a possible bug.

Product receipt voucher-

Invoice Voucher-

Additional Observations:

The issue could not be reproduced in any other environment.
This behaviour has only occurred for the above PO in Production.
A subsequent PO with the same item and the same unit price of 53.00 AED processed correctly, updating the item’s cost price and posting appropriate values—indicating the issue is isolated and inconsistent.

Upon checking with Microsoft support team, below response received-

"Please find below the clarifications and status regarding the discussed points:

Moving Average Calculation:
The working of the moving average cost calculation has been thoroughly explained during the call, along with references to Microsoft documentation. The logic and behavior appear consistent and acceptable from both our end and yours.
Incorrect Cost Captured for a Specific Purchase Order:
This issue pertains to a single PO where the cost was reportedly captured incorrectly. However, as the issue is more than 15 days old and cannot be replicated, we have reviewed the telemetry logs but could not identify any unusual activity in the system during that period.
As explained during our discussion, without the ability to replicate the issue, and considering the technical limitations, further investigation is not feasible through the system. In your case you can check with internal customer finance team and input manual JV to move the balance to required accounts (This is purely an internal call)"

We are requesting if anyone can guide us on the recommended workaround or correction process to address and fix the financial impact of this erroneous voucher.

What exact JV manual entry to pass to nullify the financial impact?

Regards,

Abhijit

Categories:

Dynamics 365 Supply Chain Management

Hi Abhijit,

You're right to be cautious — manual adjustments with Moving Average items can be tricky and often lead to discrepancies in inventory valuation if not handled carefully.

It’s unusual for Microsoft to recommend a manual JV in such cases because transferring from the price difference account to the inventory account via GL could cause reconciliation issues down the line, especially if the item is still actively used or if inventory remains.

If no inventory existed at the time of posting, or if the PO was closed against a mismatched cost sequence, then the system posts the variance to Price Difference as per design. Unfortunately, you can’t adjust historical MA cost without affecting downstream transactions.

Create a new charge code:

Theres a workaround in my mind but this needs to be carefully tested before execution,

This way no Vendor would be credit, all cost should be part of your item. The moving average price difference account would also be adjusted.

Create a new charge code just for this purpose.
- Debit: Item
- Credit: Price difference for MA
Open a PO for the same item with a new lot and apply this charge manually with the same amount.
Post and confirm:
- Ensure the cost flows correctly to the inventory account and not to the price difference.
- If successful, you can mimic this in production.