AX2012 - Item Model FIFO at BATCH Level

Dynamics 365 for Finance and Operations/AX User Forum
1

Hi,

Is it possible to set the item model to FIFO at batch level?

As per my understanding, i

If i want the FIFO costing model at site level, then the i will mark the “Financial inventory” for site only at the storage dimension group.

If i want the FIFO costing model at warehouse level, then the i will mark the “Financial inventory” for site & warehouse at the storage dimension group.

If i want the FIFO costing model at warehouse level, then the i will mark the “Financial inventory” for site & warehouse at the storage dimension group; i also mark the “Financial inventory” for batch at the tracking dimension group.

With the above setup, does it mean the item model will be FIFO at batch level?

Thanks,

Lee

2

Hi Lee,

I have not tested this but the MS training materials say that batch and serial numbers are not financially active dimensions in AX2012.

Ludwig

3

The answer is from an accounting perspective no, but it could be yes :slight_smile:

Basically FIFO costing will take the earliest cost, orrelevant of the transaction shipped. If you financially track the batch the system adjusts teh financial cost. Now if you receive the batchs in numerical order and issue them in numerical order then you are costing in line with true FIFO. However if you do not pick the suggested batch and pick another out of sequence then you are not FIFO costing by batch because the cost will be adjusted to the actual cost of the batch because it is set in this manner.