[data migration] accounting cost entry and reverse cost entry in moving average case

Finance and Operations/AX User Forum
1

The step we do for switching from legacy to ax is

  • We print out opened sales order information from the legacy system, and let the user key-in those information into Ax ( open new SO in Ax manually ).

  • After we finished key-in open PO, SO into the system, we posted stock journal to adjust the quantity and the cost price of the item in the inventory. Now we use this as a starting point, the inventory quantity, inventory cost price, and accounting balance of 2 system will be equal.

However, our item price is set as moving average.

Scenario

  • Let say if we have 1 opened sales order that status delivered ( not yet invoice ).

When we key-in this SO (before adjustment the inventory/account), we also perform product delivery.

Ax post cost entry like this when we perform the product delivery

delivered :

Dr Sales, packing slip offset wrong cost price

Cr Order, packing slip wrong cost price

The reason that the cost price that was posted to Ax was wrong is this is the opened SO from the legacy, and Ax use its own calculated cost price ( our item is moving average ).

  • After we finished key-in open PO, SO into the system, we posted stock journal to adjust the quantity and the cost price of the item in the inventory. Now we use this as a starting point, the inventory quantity, inventory cost price, and accounting balance of 2 system will be equal.

  • However, Ax already post the account when we perform the delivered, and this account will be reversed when we post the invoice

invoice : reverse

Dr Order, packing slip same amount as above which is wrong cost price

Cr Sales, packing slip offset same amount as above which is wrong cost price

Therefore, when we delivered the account balance of “Order, packing slip” main account and “Sales, packing slip offset” main account will not be correct. ( Since the accounting balance is adjusted from the step2, but this happened after that )

If we have situation like this, what should we do ?

or do you have any suggesting bringing the moving average item from the legacy system to Ax ?

Thank you very much

2

There are really four choices:

  1. Invoice everything - then it is an outstanding invoice, no GSNI position and no cost to worry about.

  2. In the legacy system you adjust the moving average cost entries to a static average cost for the change over, so your booking in of stock at one cost is no issue - level the costing playing field so to speak.

  3. Adjust in AX, to do this you will need to have separated the receipts - perhaps even by warehouse, and then use the adjust moving average cost function to adjust the receipt entry that has subsequently been shipped to push through the inventory cost.

  4. Live with it knowing it is an explainable cost difference because of the leveling of the cost and the new starting point for moving average cost.

Probably other iterative choices, but that is where I would start.