Settlement principle - physical value


From Inventory closing and adjustment form, I click the Settlement, I can view the settlement for voucher. I was wondering what the Settlement Principle means, especially for “Physical value”?


Any one can help?

No , It will adjust the cost of inbound entries to outbound entries .

There is a whole manual on teh settlement principle based upon the include physical flag and the costing method and how the settlement is applied. I suggest you read this.

I already went through the manual and can’t understand the principle

  • FIFO
  • LIFO
  • Weighted Avg
  • Weighted Avg Date
  • LIFO Date
  • Marking
  • Adjustment

Only confused by “Physical value” now.

Chapter 2 of manual 50191 inventory costing and valuation has 39 pages on the impact of physical value, if after reading this and the impact on each costing method it is not clear I suggest you get an AX finance consultant to talk to you.