Adjusting Cost on Inventory Transactions in D365 for Finance and Operations: Part II
Posted on: December 19, 2017 | By: Jarrod Kraemer | Microsoft Dynamics AX/365
Authored by: Rosey McAdams
In Part I of this blog we looked at how to adjust the cost on inventory transactions in Dynamics 365 for Operations, if you have not already done so check out Adjusting Cost on Inventory Transactions Part I. Today we are going to look at why certain transactions do not show up in the Adjustment form. There are several types of transactions that you will notice will not show up when you navigate to Closing and Adjustment > Adjustments and select the transaction criteria you are looking for – even though you know you have several transactions on the item you are searching for.
So, why is it that the transactions you are expecting to show up in the adjustment screen not showing up, and why can’t we adjust these transactions? Below are some of the common types of transactions that will not show up in the Adjustment form and why:
1) Outbound transactions
Any transaction that is a sale type transaction, like a Sales order or Inventory write off will not show up in the adjustment screen. This is because we can only adjust inbound, or purchase type, transactions – i.e. we can fix the price that we brought the inventory into the system at. However, the only way to adjust the price that the inventory goes out at, is by adjusting an inbound calculation and then running a recalculation. See part I of this blog for more information on how this works.
2) Transactions on items using Standard Cost or Moving Average
Only transactions on items with inventory costing models of FIFO, LIFO or Average Cost will show up in the transaction adjustment screen. Items with inventory costing models of Standard Cost or Moving Average cannot be adjusted here, and therefore will not show up when you search for transactions in this screen. You can adjust standard cost transactions by adjusting the standard cost price in the costing version, and you can adjust the moving average price with the Revaluation for moving average functionality.
3) Return orders
This one has certainly caused some frustration and confusion for me before, on return orders marked against an original sales order will show up in this screen. But why wouldn’t return sales orders show up?! They are in fact receipt transactions! If you are trying to adjust a cost on an inbound return sales order that was generated by, and linked to an original sales order, you cannot adjust this transaction in the adjustments screen. This is because the inbound return sales order is marked to the original sales order, and can only be brought back into the system at the price the sales order was issued at.
These are some of the issues that I have run into and found frustrating as I have worked to try to adjust costs on inventory transactions. Hopefully these explanations on why you cannot edit the cost of certain posted transactions will help you avoid some of the frustrating experiences that I have run into in the past. For additional help information please feel free to reach out to us at info@loganconsulting.com or (312) 345-8817. Also keep your eyes peeled for Part III of this blog taking an even deeper dive into the Adjustments screen!
All the best!
Logan Consulting
www.loganconsulting.com