How to attain batch costing using microsoft dynamics ax 4.0

Finance and Operations/AX Technical Forum
1

Hi,

How can we maintain per batch costing in microsoft dynamics ax 4.0? We would select costing method and accordingly the cost would be posted into the ledger during either the recalculation or the during the closing. Instead of this, I would want the batch cost to be maintained across and batch cost according to that has to be posted into the ledger.

Thanks in Advance!

2

If you financially cost by batch you would see this in the on hand. I beleive, but feel free to prove me wrong, that as you are batch controlled the cost used initially would be the average cost, but the inventory close would adjust the cost. This seems to be what you are saying, but then you want batch cost maintained, which is where I lose you slightly - what do you mean?

3

Some clarity is missing in the post

any way the batch costing will use average cost irrespective of your costing method…

and this will be posted to ledger

and when you do a closing or recalculation the batch costing will be done again according to the actual method of costing…

and the ledger entries will also get adjusted…

4

Hi Adam/Kranthi,

I understand that the costing method of AX 4.0 is average costing. But my requirement is I have an item I1 with batches B1 and another batch B2. I have purchase 50 of B1 and 25 of B2 . Let us assume that cost of B1 is 20, and cost of B2 is 25. The total cost of B1 is 1000 and B2 is 625. Now, if I sell or transfer the item I1 with total 75 items, the cost of the item would be at 21.66 irrespective of the batch, i.e., both the batches would have the cost price as 21.66,at the receiving warehouse while a transfer or when it is sold. Instead of this, would I be able to maintain the cost as 20 for batch B1 and 25 for batch B2? Any inputs?

5

Try this,

In your dimension group attached to the item…

for the batch number select → enable financial Inventory

it will help you to maintain batch wise costing…when is transferred or issued etc…

6

Thanks Kranthi. Well I have tried it using Financial Inventory in the Dimension Groups and transferred 2 batches from one warehouse to another. But once the transfer order has been completed, the system would consider the average cost of both once the transfer has been completed. You can test it at your end too. It would not consider the batch cost at the receiving, it would consider the average receipt price of the item and would give the same to the batches too. I have run the recalculation after the transaction has been done, but with no luck!

7

It should work…

Can you put the sequence of transaction with values (a test case)…

8

Taken an item TestBatch with two batches. Purchased one batch with 21 and other batch 15.75 into site 1 and warehouse 11. Transferred 1 quantity each for from each of the batches to site 2 and warehouse 21. In the warehouse 21 it has to maintain 21 and 15.75, instead it has taken the average cost as 18.38 each batch. You can try this at your end give me a feed back.

9

And when you run the inventory close what happens?