AX 2012 for Item Cost Price Allocation in Inventory

Finance and Operations/AX User Forum
1

Hi,

I have the following scenario

  • Received 10 Pcs from vendor and taken in to Inventory with a cost price 100.
  • Sold 5 Pcs and now have 5 Pcs in stock.
  • Out of 5 Pcs need to provide 2 Pcs sample at free of cost to a customer and the cost price of this 2 pcs should be equally allocated to the rest of stock (3 Pcs).

How to equally distribute the cost price for the rest of the stock. Any provision in AX 2012 or any suggestion for a workaround.

Prabu

2

How are you issuing inventory to customer? probably through SO with 0 amount. Please note that inventory consumption will be posted regardless.

Now since only three items are left and you want to adjust item price, i think the best way is to use item adjustment feature available in inventory closing form.

The other point to note here is that inventory profit/loss will be posted when you adjust the item cost price and basically inventory profit will be posted.

Pranav

3

An important concept here. The provision to the cost is that the sample is free to the customer. It still has an associated cost, you have still moved inventory at a cost and loss to you - you do not provide them at zero COST, the customer does not care what they cost you, you provide them at zero PRICE to the customer. Allocating the cost to the other three impacts the margin of future sales unfairly and over inflates your inventory.

4

Dear Pranav,

Thanks for your comments and solution worked out for us.

Prabu

5

Dear AdamRoue,

Thanks for your comments. I’ii take note.

Prabu