We are a manufacturing group that is in the middle of an AX 2012 core model project where we would like to adopt weighted average inventory valuation methodology for raw materials and standard costing for finished goods. When recalculating the standard costs for finished goods every month, can AX use the weighted average value for the raw materials rather than the Trade Agreement or Latest Purchase price, which currently it seems to use in our set up? If so, does anybody know how to set this up?
I am not sure to be honest, but in standard costing versions you have less choice, the cost price model is driven from the version cost price which should mean the cost price comes from the BOM calculation group or the cost price version, so have a look at your components, do they have a BOM Calculation group set, if not what is the default in the stock and warehouse parameters? Then look at the cost price model, is it set to trade agreement with a fall back of item cost price? You could set this to stock price, but you would need to test it as I am not sure what it would do.
The RM item is linked to a Calculation Group which had Trade Agreement as the Cost Price model followed by Item Cost price as the Alternate. We just changed those both to Inventory Price, where we have a weighted average cost, and tried to activate the cost for the RM item but it just comes back with an error saying no item cost record found so am a bit stumped. I am wondering what is the point of the Inventory Price option as a Cost Price in the Calculation Group if you do not seem to be able to use it?
In your costing version what is your fallback option?
For Planned Costing type, we currently have “none” in the Fallback principle, alhough i think our adviser has played around with other options. We have Purchase price model “Trading Agreement”. The RM item in question is linked to Item Model group “Weighted Average” and a Calculation Group which has Cost Price model “Trading Agreement” followed by an Alternate “Item Cost Price”. We would like to value our RMs using weighted average and use that cost for RMs in the BOM calculation for finished goods which we set up with Standard Costing. We are just struggling how to link that weighted average for RMs to the BOM for the standard costed finished goods. in the Calculation groups, it has Inventory Price as an option but we cannot find any way that this can actually be used with the settings we have.
I believe that the logic of the calculation group set to look at the cost rather than a trade agreement would first obey the costing version rules, and therefore look in the costing version where there is none, however if your fall-back principle was active it should look at the current cost on the item record. All conjecture but my first stab would be the cost price on the calculation group with the planned costing type fallback to be the active item cost.
If you have a planned costing type and no fall back principle it means surely that the system is looking in the costing version or the cost/price table? Not sure I only have ever set the planned costing type to active and put nothing except direct costs and cost category costs into the costing version.