The Microsoft Dynamics AX inventory close process settles issue transactions to receipt transactions based on the inventory valuation method that is selected in the item's inventory model group. You can also choose to have the general ledger updated to reflect the adjustments that have been made.
Until inventory close or recalculation is run, however, Microsoft Dynamics AX posts issue transactions at the calculated running average cost price.
After inventory close, it is no longer possible to post in periods prior to the inventory close date that you set unless you cancel a completed inventory close process. For example, if inventory close is run for the period ending January 31, Microsoft Dynamics AX will prevent any transactions from being posted with a date prior to January 31.
Beginning with this version of Microsoft Dynamics AX, inventory close is not required with the Standard cost valuation method.
The frequency of running inventory close varies by company, but transaction volume will have an impact on how often you choose to run inventory close. In general, most companies run inventory close as part of their month-end closing and reconciliation procedures.
We recommended that you run inventory close during off-peak hours to more evenly distribute computing resources.
If adjustments to inventory and the general ledger are necessary during the course of a month or other inventory period, you can run inventory recalculation instead of inventory close. Inventory recalculation makes adjustments, but not settlements, to inventory transactions.
Items in inventory are assigned to one of three inventory types: item, bill of materials (BOM), or service. Inventory close will perform the same functions for all three types, but for service items, inventory close will still settle issues to receipts.