D365 Finance & Operations: Item Model Groups

Posted on: July 24, 2019 | By: David Occhionero | Microsoft Dynamics AX/365

In this post I wanted to go over the setup of the Item Model Group in Dynamics365 Finance & Operations.  Each product you create must have an item model group attached to it, and the setup is under Inventory Management> Setup> Inventory> Item Model Groups.  An item model group will determine the rules for handling your inventory transactions of type issue and receipt.  These make your item maintenance easier.

1.      Stocked Products- Will this product be handled in inventory?

2.      Negative Inventory- Will you allow the physical and or financial inventory to go negative?  I am not a fan of negative inventory, but it may support your business process.

3.      Quarantine Management- Will we initiate a quarantine process on these orders?  The process would kick off during item receipts.

4.      Consolidated Picking Method- Do we want to use a consolidated picking method for issue transactions?  This involves the ability to pick multiple orders at once while using native shipment functionality

5.      Post physical inventory- Will we post physical transactions to the GL?

6.      Post financial inventory Will we post financial transactions to the GL?

7.      Post to deferred revenue account on Sales Delivery- This posting would occur on a shipment that has been packing slip updated but not invoiced

8.      Accrue Liability on product receipt- This occurs during a receipt where we post on product receive prior to invoicing

9.      Physical update- These determine what inventory status is required on your products before they can move on to further processing.

a.      Registration requirements

b.      Receiving Requirements

c.      Picking Requirements

d.      Deduction Requirements

10.   Inventory Model-This field is a drop down selection that determines the item cost price

11.   Include physical value- Do we want the physically updated quantity and value in calculation of average cost price.  This would apply to items that have not been financially updated

12.   Fixed Receipt Price- This setting will adjust item receipts to a standard cost price.

13.   Reservation- These settings dictate the way items get reserved off of expected receipts.

a.      FIFO- Do we want to activate a date controlled reservation?  If so, do we then want to look backward from our ship date

b.      Item Sales Reservation- How do we want our sales orders to reserve items?

c.      Same batch selection- Do we have restrictions on using the same batch or can we use multiples?

i.     Consolidation requirement- Activated when same batch selection is marked.  This will consolidate order lines for same batches.

d.      FEFO- This will look at dates on batches

i.     Pick Criteria- If FEFO is checked this determines if we use expiration or best before date.

14.   Batch Disposition code- What is our batch disposition code coming into the system

15.   Purchase Registration- do we want to add vendor batch details upon registration.  This will involve details like country of origin etc.

16.   Approved vendor check method- Do we want to set an approved Vendor check?

Hopefully this post familiarized you with the different item model group settings for Dynamics365 Finance & Operations.  As you can see there are many ways this form can be configured.

For additional information please feel free to contact us at Logan Consulting or call (312) 345-8817.


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