average Cost Price Difference in Main and Transit Warehouse

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Posted on by erpgeek01

Dear Experts,

I am facing an issue on Cost price difference between main and transit warehouse.

I used to transfer item # 10001 from one warehouse to another warehouse using transfer order functionality. On the IVR report system is showing incorrect average cost for the item lying in Transit warehouse.

i am using Weighted average costing method with Include physical value in the Item model group.

7026.Screenshot_5F00_3.png

AX 2012 R3 CU13.

Could not understand why the system is showing different cost price for the same item transferred from one WH to another WH within the same site.

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Satish Panwar 14,671 Moderator on at

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Hi erpgeek01,

For the item do you have financial inventory check box marked at the storage dimension level for warehouse? If yes, it can make the difference overtime.

Thanks,

Satish Panwar

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erpgeek01 49 on at

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Hi Sathish

Yes. Financial inventory check box is marked at storage dimension level...for Site, Warehouse, Location combination..

how to validate the change/rootcause of the difference.

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Ludwig Reinhard Microsoft Employee on at

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Hello erpgeek01,

Why is the average unit cost price in the inventory value report wrong?

It just takes the amount and divides it by the quantity and both calculations are correct.

Note: The 'average unit cost' that you see there are not necessarily identical to what is often referred to as the running average cost price that AX temporarily uses before doing the inventory close/recalculation.

Can you check the transactions that are especially sitting in your TW warehouse and check the prices and amounts posted there?

Maybe some charges or adjustments have been made there?!

Best regards,

Ludwig

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erpgeek01 49 on at

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Hello Ludwig,

I don't see any changes were posted on the Transfer Orders but there were some cost adjustment entries on the past transactions.

How to validate the average cost price.

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Ludwig Reinhard Microsoft Employee on at

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Hi erpgeek01,

If you open the on hand form separated by your warehouses, what 'current average cost price' do you see at the very bottom of the second screen?

Is the price that you see different from what the inventory value report shows you?

Can you share some details of the cost adjustments that you found?

Many thanks,

Ludwig

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erpgeek01 49 on at

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Hi Ludwing,

1st one is for Transit Warehouse

Below one is for Main Warehouse

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Satish Panwar 14,671 Moderator on at

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Hi erpgeek01,

Please see example below that will help you understand why the costs can be different:

1. If financial inventory is marked against warehouse, it means, we are setting system to track $$ against the warehouses. Warehouse A can have a different price than warehouse B. It doesn't matter whether it's transit warehouse or any other warehouse.

2. Purchase 1 quantity at $10 in WH1.

3. Shipped from WH1 to WH2 via transit warehouse TW1. after shipment, TW1 will show price of $10.

4. Purchase 1 quantity at $12 in WH1

5. Purchase 1 quantity at $15 in WH1

Now if you notice, we have 2 qty in WH1 with total of $12 + $15 = $27. Cost price is $13.5

TW1 still has price of $10.

Above is just a very simple example, more transactions you have, more complex it gets. It gets tricky when you have 100's of transactions with varying prices. You can try example above by creating a new item and use this to explain the situation that why warehouse have different prices. Hope this explanation helps.

Thanks,

Satish Panwar

Please take time to click 'Yes' against the answers that help you guide in right direction to help other community members.

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Ludwig Reinhard Microsoft Employee on at

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Good morning erpgeek01,

Thank you for sharing those screenprints.

It is very common that the cost prices that you see in this form - the 'running average cost prices' - differ from what you see in the inventory value report.

That is because the inventory value report is usually back dated to the last day of the previous month while the forms you shared show the current price including all transactions as of the time you open the form.

What you can possibly do next time to double check the accuracy of your data is the following:

Run the inventory value report as of 31 Aug 2018 and directly after that open those forms. At this point in time the cost prices should be identical with the ones you see in the inventory value report.

Note: If you run the inventory value report later on in early September and have additional inventory transactions recorded you won't be able to make this kind of check as the on-hand form does not allow backdating as the inventory value report does.

Best regards,

Ludwig

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