Running average cost

Finance and Operations/AX User Forum
1

Hi

We are swiching from GP to AX 2009, and have a question about Inventory model.

We are using “Average perpetual” as item cost Valuation Method in GP. I believe it is equivalent to running average. As we read manual of AX, “Weighted avg” is closed to what we are doing now in GP. However, according to AX manual, inventory closing is recommended. If we close inventory, AX will calculate adjustment and cost won’t be running average.

Does anyone know if there is any problme and/or influence with AX without closing inventory?

Thank you,

Taka

2

Hi Taka,#### AX shows the Running Average online unless the recalculation or the inventory closing are ran. When this happens, the cost is updated according to the selected inventory model: Average Cost, Date Average Cost, FIFO, LIFO Date, Standard. In your case, Average Cost.#### I advise you to make the inventory closing because it will have very much different in cost.

Regards,

Murilo Oliveira

3

Hi Murilo,

Thank you for your advice.

But if we run inventory closing monthly, cost of item will be Monthly average. If possible, we would like to use running average cost calculation.

Do you think it causes any problem?

Taka

4

No problem. You can don´t use closing inventory, because it is this that you want.

Murilo Oliveira

5

Do you think it will make AX daily operation/performance slow if we don’t close inventory periodically?

Thank you,

Taka

6

Taka,

This will not make AX daily operation/perfomance slow.

Murilo Oliveira