Description of the Marking functionality that is used in inventory transactions in Microsoft Dynamics AX

This article describes the Marking functionality that is used in inventory transactions in Microsoft Dynamics AX 2009.

Applies to:   Microsoft Dynamics AX 2009
Original KB number:   953714

You can use the Marking functionality in inventory transactions to link a quantity on a specific issue inventory transaction to a quantity on a specific receipt inventory transaction. This functionality forces the Recalculation functionality and the Close functionality in Inventory to settle the quantity that was marked between the two transactions. Usually, Microsoft Dynamics AX uses the costing method that is specified on the item's model group when you run the Recalculation functionality and the Close functionality. However, if you set up the Marking functionality, the usual costing method that is specified on the item's model group will be overridden.

The Reference lot field in an inventory transaction is called the InventRefTransId field in the InventTrans table. This field references the Lot ID field for the inventory transaction that you marked. This means that there is always a one-to-one match between an issue transaction and a receipt transaction. When you mark an issue transaction to a receipt transaction, the issue transaction will have a marked quantity. The receipt transaction will have the oppositely-signed value for the marked quantity.

Sometimes, the issue transaction or the receipt transaction may require splitting. Microsoft Dynamics AX splits the transactions as follows:

• If the quantity that is marked from an issue transaction is less than the total quantity on the issue transaction, the issue transaction is split into the following two records:

  • Issue transaction A has the marked quantity.
  • Issue transaction B has the remaining unmarked quantity.

• If the quantity that is marked to a receipt transaction is less than the total quantity on the receipt transaction, the receipt transaction is split into the following two records:

  • Receipt transaction A has the marked quantity.
  • Receipt transaction B has the remaining unmarked quantity.

Additionally, the lot ID of the receipt is stored in the Reference lot field in the issue transaction. The lot ID of the issue transaction is stored in the Reference lot field in the receipt transaction.

For example, consider the following scenario:

• You post a receipt transaction of 10 pieces on purchase order PO1 at $10.00 for each piece. The lot ID for this receipt is "12345."
• You post a receipt transaction of 10 pieces on purchase order PO2 at $15.00 for each piece. The lot ID for this receipt is "12346."
• You post a receipt transaction of 10 pieces on purchase order PO3 at $20.00 for each piece. The lot ID for this receipt is "12347."
• You post an issue transaction of four pieces on sales order SO1. The lot ID for this issue is "12348." This issue is posted by using a total financial cost of $60.00. This total is calculated by using four pieces at an average of three receipts at $15.00 for each piece.
• The item for which you posted the receipts and the issue transaction uses the First in, First out (FIFO) model group.
• You do not use the Marking functionality.

In this scenario, the Close functionality will settle the issue transaction against the first receipt PO1. Additionally, the Close functionality will adjust the cost down from $60.00 to $40.00 ($40.00 = 4 pieces x $10). In this case, four pieces are costed based on the receipt PO1 at a cost of $10 for each piece.

However, if you use the Marking functionality to mark the issue SO1 to the third receipt PO3, the following actions occur:

• The inventory transaction of the receipt PO3 will be split into the following two records:
  • Receipt transaction A has a quantity of 4 and is used for the Marking functionality to the issue SO1. This record has the original lot ID "12347."
  • Receipt transaction B has a quantity of 6 and is used for the remaining unmarked quantity. This record also has the original lot ID "12347."
• The issue transaction that has lot ID "12348" will have lot ID "12347" stored in the Reference lot field.
• Receipt transaction A will have lot ID "12348" stored in the Reference lot field.
• The issue transaction is not split because the full quantity of the issue transaction was marked.
• When you run the Close functionality, the issue transaction will be adjusted from the current cost of $60 to a new cost of $80 ($80 = 4 pieces x $20). This occurs because you marked the issue SO1 to the receipt PO3. Receipt PO3 had a cost of $20 for each piece.