Sales order in production


Can someone explain the relation of Sales order and production in ax 2009.

You are creating inventory through BOM journal, and once there is a customer you create sales order in AR, I can see that the inventory is being lessen but i cannot see the value of its item. I am concern with the accounting cycle of this. Please explain.

Thank you.

It will gets updated when you invoice the sales order.


We can create a Production order based on the Sales order and we can view the price calculations at Production order and item value gets updated when order gets invoiced.


If you are using a BOM Journal I would argue you are not using production and you are not that concerned about the costing cycle.

Item cost must be updated while posting it through BOM journal itself. So that when you invoice this item in the sales order level, the cost consumption would happen and the relevent ledgers posted accordingly.


Without any of the obvious value add you have provided in the cost for the transformation - unless you use standard costing.

Hi everybody,

Thanks for the reply. I think Adam is right, you can see the accounting cycle when you use Production order, because BOM journal is use when creating a process. It is now clear to me.

Thank you very much again. :slight_smile: