item cost issue

Finance and Operations/AX User Forum
1

hi all,

the costing method in our environment is set to weighted average by date.

my question is the follwing:

if i had an item with many transactions [weighted average was $5] and now it is of zero quantity in my stock, then i wanted to purchase from the same item again, but i got a huge discount on this purchase [cost of $3], so i decided to sell it with $4.5 in order to seal the deal with the customer. logically speaking i should have made a profit of $1.5, but what happens exactly in the system?

does the system still reserve the old weighted average of $5 even though my stock is zero and then make average with $3, thus considering that i did not make any profit, instead i lost?

or does the system consider the there is no cost anymore since there is no quantity left?

and sorry the system is Microsoft AX 2009 not navision

2

No quanity logically implies no Value. The purchase order cost will be considered as there is no inventory value earlier to accumulate and to calculate the avg cost.

Have you tried in the system?

3

i’m taking a backup from the company in order to make a testing environment to check the scenario…

so what you said is only an assumption right? nothing sure?

4

Hi,

Weighted average price will be updated after the PO is posted.

Also, you can run recalculation to get the exact ledger value of inventory.

pranav…

5

No. That is how it should work…