Export (0) Print
Expand All

About Include physical value [AX 2012]

Updated: December 2, 2010

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

The Include physical value check box on the Inventory model FastTab of the Item model groups form is used to specify whether physically updated transactions are factored into the calculation of the running average cost price for an item.

Include physical value check box status

Result

Selected

Both physically updated transactions and financially updated transactions are used to calculate the running average cost price.

Cleared

Only financially updated transactions are used to calculate the running average cost price.

The Include physical value check box produces slightly different results, depending on the inventory model you use.

  • If you select the Include physical value check box when you use the FIFO, LIFO, or LIFO Date inventory model, inventory close also makes adjustments to physically updated transactions.

  • If you do not select the Include physical value check box when you use these inventory models, inventory close makes settlements only to financially updated transactions.

  • When you use the weighted average or weighted average date inventory model, inventory close settles only financially updated transactions, regardless of whether you select the Include physical value check box.

You have selected the Include physical value check box and receive the following purchase orders:

  • Purchase order for a quantity of 2; cost price is USD 10.00; packing slip updated

  • Purchase order for a quantity of 3; cost price is USD 12.00; invoice updated

In this case, the running average cost price will be USD 11.20, because both physically and financially updated transactions are used to calculate the cost price.

You have not selected the Include physical value check box, and the cost price on the item setup is USD 10.00. You receive the following purchase order:

  • Purchase order for a quantity of 20; cost price is USD 12.00; packing slip updated

When a sales order is posted, the posted cost amount is USD 10.00, because the running average cost price will not include physically posted transactions.

NoteNote

For comparison, if Include physical value had been selected for this item, the sales order would have been posted with a cost amount of USD 12.00.


Announcements: To see known issues and recent fixes, use Issue search in Microsoft Dynamics Lifecycle Services (LCS).
Was this page helpful?
(1500 characters remaining)
Thank you for your feedback

Community Additions

ADD
Show:
© 2014 Microsoft