FIFO method working like Weighted average

Hi all,

We have configured item model group as FIFO but after performing transactions of purchase and sales, it is showing behavior of weighted average method for inventory transaction. Please let me know if something is missed in setups of inventory and warehouse management.

below is a transaction screenshot for item e.g 10006




Initially, AX uses weighted average method for the issue transactions regardless of your inventory model group.

But, when you perform inventory closing/Inventory recalculation then you will see the cost amounts adjusted and FIFO principle is considered. Try running the recalculation.

When the items are issued from inventory AX pass the entry as per Average Cost.

Correct value is updated after recalculation and see the changes.

Inventory calculation can be run for one item also.

thank u all :slight_smile: yes these solution worked Santosh and Sachin…