Executing a Physical Inventory in AX 2012
Posted on: November 18, 2014 | By: Jarrod Kraemer | Microsoft Dynamics AX/365
Depending on the size of your Company, Warehouse, and Item list, executing a Physical Inventory can range from a few hours up to a few days. A physical inventory typically gets mandated by the business to ensure proper inventory counts, costing, and inventory at outside locations. The process should be kicked off by a controller/financial manager and a schedule and counting procedures should be reviewed with the team. The schedule should show which team members will work together at what times and in which location. The procedures should show the team how to identify the items that have been counted, and how to address any counting discrepancies that occur. There are also AX procedures that need to be taken into account when executing a physical inventory. They will be outlined below.
Checklist Items for the Counting Team
1. Counting team checks to see if all AX Items are setup with Counting Groups
2. Check to see if all receipts are packing slip updated
a. No “open” packing slip ready journals in arrival overview
3. Report as Finish Production and Batch Orders
a. Report as finish correct quantities for all production and batch orders
b. Quantities need to be received and not registered
c. If a partial quantity exists, execute a reverse pick of input material that has not been processed
4. Subcontractor Work
a. Reconcile Subcontractor Production orders with subcontractor
5. Planned Shipments are Empty
a. Ensure that shipments do not have any items that are reserved, picked, staged, or loaded
6. All Return orders are entered and systematically received
a. Compare these against claims
7. All inventory journals are posted
a. No “open” inventory journals (Movement, P & L, Transfer)
1. Run Inventory Recalculation
2. Take Backup of System
3. Create and Post Counting Journals
4. Run Inventory Recalculation
5. Run Master Planning (If applicable)
Post Physical Process
1. Open counting History (Inventory and Warehouse Management Inquiries) and filter out any variances
2. Adjust GL balances if necessary
Remember these are just some generic processes for executing a physical inventory. Your company may have different processes and procedures.
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