item posting profile in AX 2012 question

Hi, in the item posting profile (AX 2012) under Inventory tab there are few transactions like

“Fixed receipt price profit”, “Fixed receipt price loss” etc, what does this mean? We want to know what GL accounts that need to be created for this purpose? What inventory transactions will trigger this?

Also in the purchase Tab, we see the reference to “fixed receipt”

In the standard cost variance, what does the “Cost change variance” refer to. Does this refer to the change in the production BoM.?

Is there any white-papaer that explain what each of the transactions mean such as "reciept, gain, etc., " and the GL accounts transactions (debit/credit) associated with it? I have some info for the AX 2009 but AX has some additional transactions such as “fixed”. I am looking for something similar as below:

Under sales order table, for the When Packing slip is created, the following ledger transactions occur. Similarly what are the ledger transactions related to “Fixed receipt price profit”, “Fixed receipt price loss”.


Packing slip

If you select Post physical inventory in the Inventory model group and Post packing slip in ledger in the AR parameter, then the cost of inventory is debited to general ledger when goods are delivered.

Ledger transaction when a SO packing slip is updated:
Debit: Packing slip
Credit: Packing slip offset

Fixed receipt price parameter in model group decides the posting into Fixed receipt price* accounts. The difference between the price defined for the item order price will be posted to this accounts.

Below are some useful links,

http://www.microsoft.com/en-us/download/details.aspx?id=28019

http://technet.microsoft.com/EN-US/library/aa589971.aspx

http://technet.microsoft.com/en-us/library/gg230981.aspx

Fixed receipt price parameter in model group decides the posting into Fixed receipt price* accounts. The difference between the price defined for the item order price will be posted to this accounts.

Below are some useful links,

http://www.microsoft.com/en-us/download/details.aspx?id=28019

http://technet.microsoft.com/EN-US/library/aa589971.aspx

http://technet.microsoft.com/en-us/library/gg230981.aspx

Thanks Karthik, I have another question related to how we can track the Purchase Price Variance and labor absorption. I see the PPV variance in the Item Posting Profile but I don’t see the labor variance.

Here is what we have set up as far as the Route/Operations & labor cost category.

The production run-time (say 5 hours) is set up in the Route with cost category for the direct labor (a cost group of direct manufacturing). We defined the labor overhead (Rate) in the costing sheet (that reflect both direct material cost, labor and overheads).

  1. how can we take a report on labor variance (direct and overhead) ? I believe we need to set up the ledger accounts for both direct labor and labor overhead.

We have resource group set up with a resource type (say machine or HR) and following ledger account is set up.

Accounts - WIP

WIP Issue : {'overhead plant absorption}

WIP Account : {WIP Production direct manufacturing)

Accounting - Costing:

Issue: {labor absorption}

Off-set: {WIP production clearing}

For the labor Over-head, it seems we need to define the posting for Estimated Indirect absorption (WIP) and Indirect Absorption (Costing). Assuming we set up the accounts for it, how could we see the variance reports for labor, labor overheads, Purchase price variance etc.,

Also I noticed CCV (cost change variance,) and Production price variance - what is the difference between the two?

Thank you

Any thoughts Karthik?

Any thoughts Kranthi?

  1. how can we take a report on labor variance (direct and overhead) ?

Have you looked at the costing sheet indirect costings setup?

If you post cost categories on a set standard cost you will need to track where it posts - why dont you try it and see where it goes?