Movement Journal

Hi All

Can you explain me the purpose and the use of the Movement journal, why we use it and when?? what is the impact of passing movement journal in inventory and finance.As as far as my knowledge, we use the movement journal to put the opening balance of the inventory. Can u tell me which account should be taken in the offsetaccount.

Currently i make one suspense account and taken it as the offsetaccount while passing the Movement journal but the problem in this that at the year end closing this suspense account will show for that we have to pass the voucher for nullify the effect.

As for testing i pass the movement journal without amount it is updating the stock but not the finance, but obvious i havnt give the amount.

Can you tell me the whole functionality and effects of Movement journal.


Hi Imran,

Movement journal is basically used to post the inventory transactions and inventory opening in particular. This is because when you migrate the opening balances, then the legacy system will obvously be different like quickbook or tally where you will only get consolidated value but not the quantity and cost price.

Whenever a movement journal is posted, the account defined in item group is picked as the main account and user has tp explicitely mention the offset account. In normal scenarios, when the system is up, profit/loss journal is used instead of movement journal as you define the gain or loss account in the item group and the offset account is taken directly.

If you post the movement journal w/o any cost amount, than your physical inventory will only be updated and obviously item cost price will change.


thanks Pranav for replying

That means to put the opening we have to use the counting journal.Then where and why we use the movement journal.

And in case like while entering the opening balance if some item get skip and later we get the some stock of the item, then how we will enter this opening balance and in which date.

Obviously you need to have the ledger balances, the sum in the suspense should be zero after posting your opening balances. If you are posting the ledger balaces with single voucher, then what you can do is post the movement journal with the same accounts(Offest and the main) so the net effect will be zero.

This will have an impact on the costing in the furthur transactions…

The movement journals are security keyed, so you can create 10 movement journals with defined offset accounts for 10 departments and each department only ever sees one and the offset account is defined for them. Different to a profit/loss because the offset defines the transaction.

You picked up wrong. Counting journal is different thing. As suggested above, while migrating opening balance use movement journal.

Secondly, never ever use suspense account other than migrating opening balance. Once opening balance is migrated, lock that account for further posting.

You need to have proper justification of using suspense account for auditors.


Don’t even call it “suspense”, you may have several for reconciliation purposes, so call them “debtors take on control” etc, then lock down once reconcilled.

Thanks to all for replying.

What i understand is, we use movement journal for puting opening balance. then what i have to do with the offsetaccount and its amount at the end of the year.

please explain me little more what is movememnt journal, why and where i have to use it.

Also please explain me the counting journal.why and where i can use and the effect.

And what i did at my new client, i put the opening balance through the movement journal in the date 1 jan 2012, and make the one suspense account and take that in offsetaccount. Now i found that some of the items are there in the warehouse whose opening were not entered into the system at the starting.Now i have to enter those, please tell me how can i enter, as on 12 feb i came to know about this.

please advise me what should i do.


Hi Imran,

Suggestion: Go through the manual for journals (Ch 9 of T&L II) before doing any major task for the client.

Its not at all sugggested to use functionality before even knowing its proper use and impact.

You cannot post inventory opening in two different dates. That will have a very severe impact on Finance and inventory and it will be virtually impossible to reconcile either inventory or trial balances between AX and legacy system.

If you have any issues understanding there, let us know.


Movement offset at opening balance will be zero, if not it does not balance and you need to sort it. Nothing to do at year end. If you then use the journal for write off of stock to a specific account again you do nothing, it is a business expense. Counting journals are used to process stock checks.

Movement journal is also used for booking direct consumption of the inventory which are not used in production process.

You will be posting the amount into Inventory ledger from the finance and you will also be posting the Inventory balances from Inventory(which will also post the costs into the ledger), need not to wait for the year end, post the movement journal with the same accounts(Offset and the main, change the inventory receipt account while posting the balances to same as that of offset) so the net effect will be zero.