Close inventory (form) [AX 2012]

Updated: February 4, 2014

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

Click Inventory management > Periodic > Closing and adjustment. Click Close procedure > 3. Close.

Use this form to calculate inventory value and to close the inventory for a date. The close the inventory process matches inventory receipts against inventory issue transactions as defined in the item’s inventory model. The close inventory process is used to calculate and account for the item’s inventory value at actual cost.

The following links and table provide descriptions for the controls in this form.

Enter criteria on the General tab

Submit a batch processing job from a form

Field

Description

Period code

The code of the period that you are about to close.

Close inventory up to

Enter the date for the period for which you want to close inventory. You can change this from the default date provided, but only to a date after the latest closing.

NoteNote

The first time the inventory closes, the default is the ending date of the previous month. Subsequently, the default is the ending date of the month that follows the latest active closing.

For example:

  • Inventory transactions exist for January

  • Inventory transactions exist for February

  • Inventory transactions exist for March

If the Close inventory up to value is February 28, only transactions dated equal to and before this date will be reviewed by inventory close. There will be no settlements or adjustments made on transactions dated after February 28. The next time inventory close is run after February 28, the default date provided on the Close inventory form will be March 31.

Specification

The option that you select determines the level of detail that will be posted to the general ledger. This field is available only if the Update ledger option is also selected.

If you select the Total option, the sum values for each unique ledger account will be posted to the general ledger as a total figure.

For example:

Inventory close is to make settlements to five different items. If the transactions to be adjusted contain the same general ledger account numbers, inventory close will sum the values being posted and create one general ledger journal entry:

Debit:13000 (inventory control), USD 35.00

Credit: 51000 (COGS),USD 35.00

If you select the Item group option, then the sum values for each unique item group will be posted to the general ledger.

For example:

Inventory close is to make settlements to five different items. These items belong to three different item groups. A separate transaction will be posted in the general ledger to summarize each item group.

Debit: 13000 (Inventory for item group A), USD 12.00

Debit: 13000 (Inventory for item group B), USD 10.00

Debit: 13000 (Inventory for item group C), USD 13.00

Credit:51000 (Cost of Goods Sold for item group A), USD 12.00

Credit:51000 (Cost of Goods Sold for Item group B), USD10.00

Credit:51000 (Cost of Goods Sold for item group C), USD 13.00

If you select the Item number option, the value for each unique item will be posted to the general ledger.

For example:

Inventory close is to make settlements to five different items. These items belong to three different item groups. The transaction posted in the general ledger will be a summary based on the item group.

Debit:13000 (Inventory for item 1), USD 5.00

Debit: 13000 (Inventory for item 2), USD 7.00

Debit:13000 (Inventory for item 3), USD 10.00

Debit: 13000 (Inventory for item 4), USD 4.00

Debit: 13000 (Inventory for item 5), USD 9.00

Credit: 51000 (Cost of Goods Sold for item 1), USD 5.00

Credit: 51000 (Cost of Goods Sold for Item 2), USD 7.00

Credit:51000 (Cost of Goods Sold for item 3), USD 10.00

Credit: 51000 (Cost of Goods Sold for Item 4), USD 4.00

Credit: 51000 (Cost of Goods Sold for Item 5), USD 9.00

Note

Enter a note to be shown in the overview of closings. These notes can be viewed after inventory close has completed.

Maximum throughputs

The number of iterations inventory close will perform during the close process The default is 50. A high figure gives on circularity a closer approximate cost price but a worse performance.

Maximum throughputs are used for Bill of Material accuracy and Inventory Transfer accuracy.

Bill of material example:

Finished Good (level 0)

Subassembly (level 1)

Subassembly (level 2)

Subassembly (level 3)

Subassembly (level 4)

Subassembly (level 5)

If the maximum throughput value is 4, because the lowest level of the BOM structure is 5, any cost changes that might have occurred on level 5 will not appear in the finished good item.

Minimum throughput adjustment

Works with Maximum throughputs. The value entered for Minimum throughput adjustment represents the minimum currency amount to be reflected in the next level. The default is 1.00. A low figure gives on circularity a closer approximate cost price but a worse performance. The value that you enter should be at least as deep as the lowest level in a Bill of Material.

Bill of material example:

Finished Good (level 0)

Component A (level 1)

Component B (level 1)

Assume that the maximum throughput value is larger than 2 and the minimum throughput adjustment is set to USD 5.00. Suppose that the Component B item has a settlement that is less than USD 5.00. Then the cost of this settlement will not be rolled-up and reflected in the cost of the finished good item.

Run recalculation after closing

After the closing has completed, run a recalculation from the closing date to the current date.

For example:

Assume that today is March 10 and inventory close was performed up to February 28. If the Run recalculation after closing option is selected, the system will close inventory as of February 28 and will run recalculation on the inventory transactions dated February 28 through March 10.


Announcements: To see known issues and recent fixes, use Issue search in Microsoft Dynamics Lifecycle Services (LCS).

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