Eight Tips for Handling Inventory Close with Microsoft Dynamics AX 2009

As the year draws to a close, it's time to do inventory closing with Microsoft Dynamics AX 2009. From an accounting perspective, this means settling transactions between issues and receipts, as items can be issued at one value and received at another value. 

While inventory close is no longer required when using the standard cost method, it is required for other costing methods.  With standard close, differences between the item's standard cost (used for issues) and receipt transactions will post to variance accounts, as determined, resulting in inventory always valued at the standard cost.

So the following points apply to all costing methods except standard costing:

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About Sanam Khan
Sanam Khan is an ERP senior consultant  with Maison Consulting & Solutions, ERP partners of Microsoft in Pakistan and the Middle East. She has implemented many Microsoft Dynamics AX projects, both in Pakistan and elsewhere. She specializes in Dynamics design and analysis, requirement specification definition, proof of concept, business process mapping BMP, business process reengineering BPR, team leading, IT project implementation / Management , data conversions, integrations, ERP pre-sale activities and post-implementation support roles. 

 

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Tremendous Job

Very precise and to the point article, it’s really helpful.

good job

this is really very speicific information about AX inventory and financial year close,...i am sure it will help us all....great job!! we need few more such articles!!

Basith

Can be clearer

Thanks, a few bits of feedback:

1) Title rather misleading as not really much on inventory closing and more is year end closing

2) "Before a receipt is invoiced (financially posted), there can be a difference between the actual (physical) receipt cost and the expected (financial) cost. When this occurs, the receipt value is known as the floating value."

Floating value is just the physical value if financial update has not been done.
Known value is financial update has been done but the 'As at' in the report is back dated to before the financial date.

Are these 2 terms/columns still used in AX2009 reports...I thought they did away with them as everyone got confused (although the F1 help on the inventory report that showed these fields did explain it with a simple example). Sorry dont have an AX with me right now to check

2) "Inventory close settles the initially posted average cost to an item cost based on the inventory model selected (i.e. FIFO, LIFO, Weighted average, etc.). Dynamics AX attempts to match issues to receipts based on the inventory model. If a match cannot be made, an adjustment on the issue will occur to match the receipt cost. "

Which reciept cost are you refering to since you said a match CANNOT be found?

Thanks
James

Thanks

Thanks James for the comments. I agree that the article is more about the Fiscal year close but shortly my other article which is totally about the inventory closing will be there and hope it would answer your all the questions.

Nice Article

Great attempt to help other. Keep going

Eight Tips for Handling Inventory Close with Microsoft Dynamics

Good article

Post Dated Checks in AX 2012

Set up postdated checks [AX 2012]
This topic explains how to specify whether to post journal entries for postdated checks and which posting journals to use for clearing entries and vendor payments. You can also specify clearing accounts for issued checks, received checks, and withholding tax. Postdated checks are checks that are issued to make and receive payments on a future date. You can specify whether the check must be reflected in the accounting books before its maturity date. Before you set up postdated checks, make sure that the Postdated checks configuration key is selected in the Configuration form.
Complete the following tasks before you use postdated checks:
• Set up postdated checks parameters.
• Set up a method of payment for postdated checks.
Set up postdated checks parameters
________________________________________
Use the Cash and bank management parameters form to set up postdated checks. For more information, see Cash and bank management parameters (form).
1. Click Cash and bank management > Setup > Cash and bank management parameters.
2. Click the Postdated checks link.
3. Select the Enable postdated checks check box.
4. Select the Post journal entries for postdated checks check box to post the financial transactions to clearing accounts for vendors and customers. This field is available only if you select the Enable postdated checks check box.
5. In the Clearing account for issued checks field, select a clearing account for checks issued to vendors. This field is available only if you select the Post journal entries for postdated checks check box.
A clearing account is a temporary account that contains the amounts in the postdated checks.
6. In the Clearing account for received checks field, select a clearing account for checks that are received from customers. This field is available only if you select the Post journal entries for postdated checks check box.
7. In the General journal for clearing entries field, select the journal to use to settle postdated check transactions. This field is available only if you select the Post journal entries for postdated checks check box.
8. In the Transfer postdated checks to this vendor payment journal field, select the vendor payment journal that the postdated check transactions are transferred to.
9. In the Withholding tax clearing account field, select a clearing account that the withholding tax for vendors is posted to.
Set up a method of payment for postdated checks
________________________________________
Use the Methods of payment - vendors and Methods of payment - customers forms to set up a method of payment for postdated checks. For more information, see Methods of payment - vendors (form) and Methods of payment - customers (form).
1. Click Accounts payable > Setup > Payment > Methods of payment.
-or-
Click Accounts receivable > Setup > Payment > Methods of payment.
2. In the Method of payment field, enter the method of payment for a customer or a vendor. For more information, see Set up a method of payment for checks.
3. In the Account type field, select Bank.
4. In the Payment account field, select the bank account that is used to deduct the invoice amount.
5. Select the Postdated check clearing posting check box to indicate that the check amount is posted to a clearing account. (Select the clearing account in the Clearing account for issued checks or Clearing account for received checks field in the Cash and bank management parameters form.) The Bridging posting check box is selected.
A bridging account or a clearing account is a temporary account that is used to post a transaction until the transaction is reconciled.
Register and post a postdated check from a customer [AX 2012]
This topic has not yet been rated - Rate this topic
Updated: February 22, 2013
Applies To: Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012
You can register details of a postdated check received from a customer using the Journal voucher form. You can also post the postdated check and generate financial transactions if you have selected the Post journal entries for postdated checks check box in the Cash and bank management parameters form.
Complete the following tasks before you register and post a postdated check received from a customer:
• Set up postdated checks in the Cash and bank management parameters form.
• Set up a method of payment for postdated checks in the Methods of payment - customers form.
1. Click Accounts receivable > Journals > Payments > Payment journal.
2. Create a new payment journal.
3. Click Lines, and then in the Date field, select the posting date.
4. In the Credit field, enter the amount specified in the postdated check. The credit amount is updated in the Amount field on the Postdated checks tab.
5. In the Method of payment field, select the method of payment for the postdated check.
6. In the Payment specification field, select the payment specification.
7. In the Currency field, select the currency used in the postdated check. The currency is updated in the Currency field on the Postdated checks tab.
8. Click the Postdated checks tab, and then in the Maturity date field, enter the date when the postdated check is due for payment, in MM/DD/YYYY format.
9. In the Received date field, enter the date when the postdated check was received, in MM/DD/YYYY format.
10. In the Check number field, enter or modify the postdated check number.
11. In the Cashier and Salesperson fields, select the identification codes of the cashier and the salesperson responsible for the postdated check transaction.
12. In the Issuing bank branch and Issuing bank name fields, enter the bank details of the postdated check.
13. Click Post > Post to post the amount in the postdated check. You can post a postdated check if you select the Post journal entries for postdated checks check box in the Cash and bank management parameters form.
14. Close the forms to save your changes.
You can view the posted postdated checks in the Customer postdated checks form. Click Accounts receivable > Common > Postdated checks > Customer postdated checks.

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