Onhand Negative

Finance and Operations/AX User Forum
1

Hi,

My company have some instance inventory which sales without on hand (allow inventory negative). Inventory model is “FIFO”. The negative inventory will contra aft end of day or delaying.

  1. Can suggest, should we performance inventory closing for FIFO once a month?

  2. Does counting journal help without do inventory closing?

  3. Where can we have the correct cost for each transcation without do inventory closing?

Regards

2

  1. How often do accounts want to see the true costs, this routine can be run at the end of each day I believe if required.

  2. Why would it?

  3. You cannot. Why would you when you are booking them in at the end of the day and the close will match and adjust the costs.

Why are you allowing negative and creating the issue - is it a working practive or culture change, or a business necessity? If you want it then you put up with the issues involved.

3

Hi… Thks.

1) Noted. Set weekly routine to run inventory > closing & Adjustment > recalculate. it will correct back the actual cost against the receipt item :slight_smile:

2) What is best method count for FIFO model? we need performance onhand count for FIFO model item to ensure the system onhand is correct vs physical.____Additional:

3) Noted.

It a business need to allow inventory go to negative. We try advice user to contra the negative inventory by end of day or before performance “inventory calculated”. We using two type of inventory model. Std cost & FIFO. Too bad, whole inventory need go for physical negative.

4) We try skip inventory closing for standard cost model & only performace journal count. But, sound AX do not allow select item model to have inventory close, Am i?

5) Assume we did performace FIFO inventory closing in each 30th of month. Account mthly closing period is fall on end of month (30th) & opening period is 3rd of next early month. AX do not allow any transcation carry out whithin period of 30th~3rd, am i ? except right is grant to certain group user to performace transcation within the period, am i?

Regards

4

  1. It does not matter, just count it.

  2. You should still run it for standard. No idea what you mean by item model have inventory close.

  3. If the period if open the users can post in the 1st, the difference is you are adjusting the previous month up until the 3rd, which is accounting controls.

5

Negative inventory is a sensitive parameter- You will not be having control over your inventory if your using it - so make sure that it is being used properly.

Generally companies do it on month basis - If they are using FIFO.(It may differs from companies)

And you should also keep in mind that once the inventory is closed for a particular period you cannot post the transactions in that.

No. Couting Journal is only for passing a entry to make sure that the physical and system stock are equal.

You can pass an adjuctment journla for that - but closing is a mandatory thing for FIFO - Unless the closing is done the real cost will not be defined.

6

Hi Adam,

I think it is not mandatory to run closing for Standard Cost Items. Closing will not have any effect on these items.

7

Closng will inturn do the recalculation.

How can you skip a set of items in closing?

8

You are correct and the manual states this, it also says you should still run it [:D]

9

May be to change the status of transactions to settled…

10

HI All,

Thks for suggestion and noted. The environment here not using any BOM / production.

…i do appreciate for the suggestion and it great help me.

Thks.