This article applies to Microsoft Dynamics AX for the Indian (in) region.
This issue will arise when you select method of valuation of inventory other than weighted average or standard cost method. During transaction posting, weighted average price will be considered. After inventory closing process, the system reevaluates the item cost based on the selected costing method and posts the adjustments. However, stock transfer transactions are not considered. Therefore, financial and physical inventory will not match.
AX inventory closing process revaluates the item cost based on the costing method and posts the adjustments to the appropriate inventory accounts. Stock transfer transactions should also be considered when revaluating the item cost and updating the adjusted cost to the inventory account.
Here are the setup steps and stock transfer process with inventory closure for this issue:
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Set up Item model group as FIFO. Make sure the Stocked product, Financial negative inventory, Post physical inventory, Post financial inventory, Receiving requirements, Deduction requirements, and Include physical value check boxes are selected. In addition, Pick criteria should be Expiration date and Approved vendor check method should be No check
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Set up Storage dimension
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You should select the Mandatory check box. In addition, the For purchase prices and For sales prices check boxes should also be selected for Site and Warehouse
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Create an item and attach the Item model group with FIFO
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Define required setups
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Click on the Mange cost on the action pane
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Create movement journals for items or Create Purchase order for the item
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Post Invoice and check the On hand Inventory Qty. and Value
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Create a transfer order with transfer type "Stock transfer". Enter the quantity and confirm the default price
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Post shipment and Receive
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Confirm the voucher entry after Shipment and Receive of the transfer order
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Go to Released products > Item number > Manage inventory > Onhand inventory
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Click Transactions before running Inventory closing
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Go to Inventory management > Periodic > Closing and adjustments
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Click Close procedure > Close
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Select Period code = CP
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Define Close inventory up to date
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Click Ok
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Click Ledger > Voucher
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Validate voucher entries
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Voucher entry will generate to adjust price difference of item to match financial inventory value with physical inventory value ( Weighted average price minus FIFO method price)
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After closing validate inventory on hand, go to Release products > Item number > Mange inventory > Onhand inventory
Stock transfer transactions are not aligned with inventory closing process.
Resolution
The changes in the hotfix ensure stock transfer transactions are considered when revaluating the item cost and updating the adjusted cost to the inventory account.
Hotfix information
A supported hotfix is available from Microsoft. There is a "Hotfix download available" section at the top of this Knowledge Base article. If you are encountering an issue downloading, installing this hotfix, or have other technical support questions, contact your partner or, if enrolled in a support plan directly with Microsoft, you can contact technical support for Microsoft Dynamics and create a new support request. To do this, visit the following Microsoft website:
https://mbs.microsoft.com/support/newstart.aspx You can also contact technical support for Microsoft Dynamics by phone using these links for country specific phone numbers. To do this, visit one of the following Microsoft websites:
Partners
https://mbs.microsoft.com/partnersource/resources/support/supportinformation/Global+Support+ContactsCustomers
https://mbs.microsoft.com/customersource/support/information/SupportInformation/global_support_contacts_eng.htmIn special cases, charges that are ordinarily incurred for support calls may be canceled if a Technical Support Professional for Microsoft Dynamics and related products determines that a specific update will resolve your problem. The usual support costs will apply to any additional support questions and issues that do not qualify for the specific update in question.
Installation information
If you have customizations for one or more of the methods or the tables that are affected by this hotfix, you must apply these changes in a test environment before you apply the hotfix in a production environment.
For more information about how to install this hotfix, click the following article number to view the article in the Microsoft Knowledge Base:
893082 How to install a Microsoft Dynamics AX hotfix
Prerequisites
You must have one of the following products installed to apply this hotfix:
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Microsoft Dynamics AX 2012 R3
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Microsoft Dynamics AX 2012 R2
Restart requirement
You must restart the Application Object Server (AOS) service after you apply the hotfix.
File information
The global version of this hotfix has the file attributes (or later file attributes) that are listed in the following table. The dates and times for these files are listed in Coordinated Universal Time (UTC). When you view the file information, it is converted to local time. To find the difference between UTC and local time, use the Time Zone tab in the Date and Time item in Control Panel.
