Difference between Reservation & Marking in AX

Finance and Operations/AX User Forum
1

Hi all,

Can any one explain me the major difference between Reservation & Marking in AX with small example? How it calculates inventory and how marking behaves?

as far i know that Reservation will be physical implication and Marking does Financial implication. but i want to know it with small example.

Please help me.

Srikar

2

Check these links,

http://www.mibuso.com/forum/viewtopic.php?f=11&t=12573&start=0

or

http://es-ax.blogspot.in/2012/02/picking-registration-reservation.html

3

Hey Ameen,

Thanks a lot. These above mentioned links are really useful to understand the concept of Reservation & Marking.

Srikar

4

Hi,

thanks.

Srikar

5

Hey Ameen,

Thanks a lot. These above mentioned links are really useful to understand the concept of Reservation & Marking.

Srikar

6

Hey,

When and which scenario we will be using this Marking concept? what will be the benefit of using of Marking instead of Reservation?

Sarathy

7

Hi Ameen/Sarathy,

I have same doubt. Please clarify the doubt

Srikar.

8

I have scenarios here : -

Item Invenory model - FIFO

Item purchase qty 100 with purchase price 100 (batch 1). After few week, purchase qty 100 (batch 2), purchase cost: 150.

Now you want to sale an item which should apply the cost price of batch 2 ( 150) , then you can use marking functionality.

During the daily business in inventory management there are some transactions need to be returned in same cost which it was issued, or in sales management there

are some sales orders need to be issued (Cost Of Goods Sold – COGS) with specific lot cost.

9

Generally the issue cost will be determined by the costing method after the inventory calculation, suppose you want a particular issue cost to be mapped a with a receipt cost irrespective of costing method then mark the issue with the receipt, the calculation will how ever considers the marking as this overrules the item defined costing method. The marking functionality is not applied to the standard costing items.

10

Hi,

My question is, when we go with Marking & what is its major purpose?

In above example you said, "Now you want to sale an item which should apply the cost price of batch 2 (150) , then you can use marking functionality."

my doubt is, if your going with 150, why do we need to mark it? instead of marking we can directly mention the 150 in the sales order line? so why do we require to go with marking???or else … even we can specify the Base sales price at Item master data in the item form? so, when ever you do SO then the price will be picked from item master data.

srikar

11

It is the sales price, how ever the inventory issue cost will be determined by the system by considering the costing method.

If you want to over rule this and a specific receipt cost to be applied in the inventory then you need to use the marking functionality.

The sales price will not be posted into the inventory, the difference between the sales price and inventory cost will determine your profit/loss.

12

Completely confirm Kranthi’s post above.

Marking allows the user to manually determine which inventory will be costed against a specific sales order. If you do not use marking the system will determine cost based on settings in the Inventory Model group.

If a business is already used to assigning a specific purchase and order inventory to sales order Marking is the solution, otherwise Marking is a huge business process change which holds very little value in new implementations of AX.