Costing Method Change during Upgrade from AX 4.0 to Ax 2009

Finance and Operations/AX Technical Forum
1

Hi,

Our client maintained his costing method as Standard cost before upgrade process (Ax 4.0 to Ax 2009). But after up-gradation the costing method was changed to FIFO method (Ax 2009) (whether it is possible?). They were not aware of this cost method change (STD to FIFO) and posted Inventory transactions in Ax 2009 due to this at the time of inventory close they got the wrong inventory closing value.

Kindly help me how to rectify this issue and any links or documents related to this issue will also helpful.

With Regards,

Kasthuri

2

Yes it is possible.

But before changing the costing method you should have closed your inventory transctions(so that they will not be included in furthur closing or recalculation process). Have you done it???

3

Hi,

No it was not closed, because costing method change has been occurred during up-gradation.

Whether it is possible ?

With Regards,

Kasthuri

4

HI there. I guess that is possible. As Kranthi has mentioned, you should close all the open transactions first and then change the costing method to Standard cost.

I would consider doing following steps before I change the cost method

  1. Make sure that multisite functionality is ON in the company account in question.

  2. Make sure that there are no open transactions - Purchase, Sales, Transfer orders Inventory transactions, Production orders, Item Journals etc…

  3. If applicable, Change all quantity on hand to zero.

Thanks

Thanks

5

Did the system allowed you to change the costing method without closing the existing inventory transactions?

6

Hi,

Thanks for your immediate reply. My client said that the costing method has been changed automatically during the up-gradation from Ax 4.0 to AX 2009.

He did not follow any conversion steps for costing method. The up-gradation automatically changed the costing method to FIFO.

They think that all the items are in standard cost method after up-gradation and did inventory transactions but it was not like that

So how to change the costing method to standard cost whether this will help to get the correct inventory value.

Thanks in Advance

Kasthuri

7

How the costing method can be automatically changed during the upgradation?

You need to inventigate it. Get help from MS, if this has been done without any human intervention.

I don’t think the posted transactions(which are in FIFO) get modified - becuase the consideration of standard cost is different from other costing methods - where you have the cost variances…