Overview tab

View a list of Inventory model groups or create new ones.

General tab

View one specific Inventory model group or create a new one.

Setup tab

Set up and maintain parameters for the selected Inventory model group.

Inventory model

Select inventory model.

Inventory model group

Identification for the inventory model group.

Inventory model

Select the Inventory modelused for Closing and adjustment . For descriptions of the individual inventory models, see the Help window for each model in the list.

Name

Descriptive name for the inventory model group.

Physical negative inventory

If selected, negative physical inventory is allowed for the inventory model group.

Microsoft Dynamics AX does not check whether items are physically in inventory when items are being picked.

Example

Production is started, but not all items for the production are in inventory. The items have been ordered and delivery has been scheduled. Alternatively, an order for an item is updated, and even though the item is not in inventory, it has been purchased and will soon be in inventory.

Financial negative inventory

If selected, negative financial inventory is allowed for the inventory model group.

Negative financial inventory is often used for services. If the check box is cleared, the cost price must be known for the quantity that is being financially pulled from inventory.

Example

Eight items are invoice updated, and another five are packing-slip updated, making the physical on-hand inventory 13. When financial negative inventory is not allowed (the check box is cleared), only eight are available for the invoice updating of a sales order, even though 13 are physically available in inventory.

Quarantine management

If selected, indicates that items attached to this group are under quarantine management rules and requirements.

This is used for items that are set aside and awaiting approval for distribution.

If the check box is cleared, items are not under quarantine management unless a quarantine order is created manually in Quarantine orders.

When the item is registered, a quarantine order is generated with the status Started.

Consolidated picking method

Pick multiple orders and use picking areas and shipment functionality.

Post physical inventory

If selected, physical item transactions are posted in the ledger.

If the check box is selected, physical item transactions are posted in the ledger in the following manner:

• Packing slip is posted if Post packing slip in ledgeris selected in Purchaseor Sales orderparameters or both.

• Report as finished is posted if Post report as finished in ledgeris selected in Production ordersparameters.

If the check box is cleared, Packing slipand Report as finishedare not posted in the ledger, regardless of the setup that is selected in the Purchase, Sales, or Production ordersparameters or in all three parameters.

Post financial inventory

Posts the updated financial value of items in the ledger.

When a purchase order is invoice-updated, the value of the items is posted to the inventory receipt account. When a sales order is invoice-updated, the value of the items is posted to the inventory issue and consumption accounts. The posted inventory value can then be easily reconciled with the related status accounts in the General ledger module.

If the check box is cleared, purchases are posted to the item consumption account when the purchase is invoice updated. No posting takes place in the inventory receipt account when purchases are invoice updated. Likewise, no posting occurs in the item consumption account, or the issue account when sales orders are invoice updated.

Note
If item consumption should not be posted when sales orders are invoiced, leave the check box cleared for groups that are associated with service items,. When they are left blank, lines in the Movementand Profit/Lossinventory journals do not generate ledger postings.

Post physical revenue

If selected, estimated revenue or turnover in connection with packing slip updates is posted in the ledger. Balance can figure both a realized, and an expected contribution margin.

Post physical purchase

Select whether to post the estimated purchase in connection with packing slip updates to the general ledger module.

Registration requirements

Select whether item receipts must be registered before inventory is physically updated.

When selected, the status of the item receipt inventory transaction must be Registeredbefore the item's packing slip is updated.

This field is generally used with warehouse management. Registered items are part of physical inventory. You can register items in the Warehouse management journals, or by clicking Inventory, then Registrationon the relevant journals and orders.

Picking requirements

When selected, item issues must be picked before inventory is physically updated.

The item issue inventory transactions must have the status Pickedbefore the packing slip is updated. This procedure is generally used with warehouse management. Picked items are a part of physical inventory. Items can be picked in the warehouse management system with dispatches and picking routes, or they can be picked by clicking Inventoryand then Registrationon the relevant journals and orders.

NoteIf you create a direct delivery from a sales order, then the Picking requirementsparameter is ignored because items are transferred directly from the vendor to the customer without ever physically coming into your company.

Receiving requirements

When selected, item receipts must be physically updated before they can be financially updated.

A packing slip must be entered and posted before the corresponding vendor invoice can be posted. If there is a difference between the received quantity on the packing slip and the invoiced quantity on the invoice, an icon is shown in the Packing slip quantity matchcolumn in the Posting invoiceform ( Accounts payable> Periodic> Purchase order update> Invoice). For more information, see Set up Accounts payable invoice matching.

Deduction requirements

When selected, item deductions must be physically updated before they can be financially updated.

A packing slip must be entered and posted before the corresponding vendor invoice can be posted. If there is a difference between the deducted quantity on the packing slip and the negative invoiced quantity on the invoice, an icon is shown in the Packing slip quantity matchcolumn in the Posting invoiceform ( Accounts payable> Periodic> Purchase order update> Invoice). For more information, see Set up Accounts payable invoice matching.

Date-controlled

Activates date-controlled reservation. Select if you want the date of receipt of items to be taken into consideration when reserving items. If the check box is cleared, available inventory with the lowest batch number is reserved.

Backward from ship date

Executes reservation backwards from the delivery date.

Select this check box if you want to reserve available inventory batches with the date of receipt that is nearest to the sales order delivery date. If the check box is cleared, available inventory batches with the first date of receipt are reserved.

Note
Backward from ship datefirst reserves items that are available on inventory. If no items are available on inventory, it reserves upon purchase order lines with the date of receipt that is nearest to the sales order delivery date.

Include physical value

If selected, physically updated transactions are included in the calculation of the average cost.

At inventory closing the parameter will be considered according to the inventory valuation method.

The following inventory valuation methods will consider the parameter during inventory close:

• FIFO

• LIFO

• LIFO date

The following inventory valuation methods will NOT consider the parameter during inventory close:

• Weighted avg.

• Weighted avg. date

Fixed receipt price

Adjusts item receipt and issue values to the fixed receipt price in the Item table when posted. If the receipt price is different from the fixed receipt price, inventory is updated with the fixed receipt price, and the difference is posted to the account for fixed receipt price loss or profit.

Items are posted at the current receipt price. Upon closing, issue transactions are value-adjusted according to the inventory model groups that are selected in Inventory model group.