Counting Journal Financial Impact

We have many warehouses (all on the same AX site) all stocking many items identical (same item number) as each other.

We are proposing to use counting journals to stocktake these warehouses.

I would like to know financial entry of counting journal or what are the benefits of counting journal.

  1. What will be financial impact if items are counted less or more.

  2. What will be Finance journal i mean which account Debit & Credit

Thanks,

  1. It impacts the inventory asset with the offset expense being shown in the profit or loss from the item group.

  2. Post one and find out, but clearly it depends upon whether you are adjusting positive or negative.

Hi ,

In the Item Groups form , we have the different fields for the following tabs. I am not clear about the fields , Can you share the difference between the fields .

a) Sales order issue

b) Purchase , Inventory receipt

c) Inventory Issue

When these 3 accounts would effect and does the account should be same in the these 3 fields ?

Thanks in advance.

If you want a single account to credit/debit when the inventory gets issued/received, you can use a single account.

Or you can maintain separate accounts for receipts and issues, It depends on the process and the way a company define the accounts.

a) This credits the cost of inventory to the GL when the goods are invoiced and reverses the packing slip postings.

b) This debits the cost of inventory to the GL when the goods are invoiced and reverses the packing slip postings.

c) This credits the inventory account when an inventory journal is posed to issue or decrease inventory.

There is no “should” be the same, it depends upon your setup requirements and processing, but in reality they will not all be the same.

Thank you for the reply Steven.

From above post what i have understood is that account is inventory account .

Generally companies will maintain Item group wise unique inventory accounts .

For Example - Raw material - 2000

WIP - 2001

FG -2002

So whether the material is purchased or sold or issued , the respective account would be effect , so in that case account would be the same Item group wise.

But you mentioned that in reality account would not same , what does it mean and explain the reality with an example.?

Thanks in advance.

When you issue inventory there are TWO accounts hit - the first will be the inventory asset account, the second is the expense account for the issue of stock, the loss. This is an expense you want to track and therefore it would NOT be your purchase receipt account as well. Talk to an accountant or run through the transactions and think about what you are doing from a business perspective and analyse the financial journal produced.

Thank you for the reply.

The fields explanation which i am seeking , in these fields i need to define the inventory asset account or not ?

a) Sales order issue

b) Purchase , Inventory receipt

c) Inventory Issue

Please confirm .

Why not post a sales order and sell it and look at the “issue” transaction based upon the purchase order you have received in with the “inventory receipt” set and then write stock off and look at the issue account it hits. You can then see what you need to do and understand it.

Thank you Steve,

Is there any MS document available which will explain in detail about the inventory accounts ?

Please share the document .

Any document will be on partnersource or customer source, and in general all these will do is state when the account is hit as I have above - how you actually configure it and use the tool is open to interpretation and therefore there is no “you must” guide.

here is a document for product receipts http://www.microsoft.com/en-us/download/details.aspx?id=28019