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:
- 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 ...
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