Eight Tips for Handling Inventory Close with Microsoft Dynamics AX 2009
December 14 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:
- Inventory values are based on the running calculated average cost when financially posted.
- 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.
- 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.
-
When not using the standard cost method, there can
be a link made between the item receipt and item issue cost. Marking is
performed to create this link and is considered by inventory close when settling.
Transactions "marked" inventory dimensions can control the settlement process
within a specific dimension, i.e. an item issued in an inventory dimension
cannot be settled against another inventory dimension. To control within
a specific dimension, the financial inventory parameter ...
FREE Membership Required to View Full Content:
Joining MSDynamicsWorld.com gives you free, unlimited access to news, analysis, white papers, case studies, product brochures, and more. You can also receive periodic email newsletters with the latest relevant articles and content updates.
Learn more about us hereor login
Submitted by sayeedbasith on Mon, 12/21/2009 - 05:03
Permalink
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
Submitted by RAOJAVED AKHTAR on Mon, 10/28/2013 - 12:07
Permalink
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 ...
FREE Membership Required to View Full Content:
Joining MSDynamicsWorld.com gives you free, unlimited access to news, analysis, white papers, case studies, product brochures, and more. You can also receive periodic email newsletters with the latest relevant articles and content updates.
Learn more about us here
or
login