Cancel later recalculations

Indicates that any existing recalculations dated after the Close inventory up toor Recalculate inventory up todate will be automatically reversed before continuing with the closing or recalculation. For example:

• Inventory recalculation is performed February 1.

• Inventory recalculation is performed on February 15.

• Inventory recalculation is performed on March 1.

Inventory close is is run as of February 28. Microsoft Dynamics AX automatically cancels the March 1 recalculation before inventory close is performed.

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.

Note
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 tovalue is February 28, only transactions dated equal to and prior to this date will be reviewed by inventory close to select settlements and adjustments. There will be no settlements or adjustments made on transactions dated after February 28. The nexct time inventory close is run after February 28, the default date provided on the Close inventoryform will be March 31.

Specification

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

If you select the Totaloption, 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. As long as the transactions to be adjusted all contain the same general ledger account numbers, then inventory close will sum the values being posted and create only one general ledger journal entry:

Debit:13000 (inventory control), USD 35

Credit: 51000 (COGS),USD 35

If you select the Item groupoption, 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

Debit: 13000 (Inventory for item group B), USD 10

Debit: 13000 (Inventory for item group C), USD 13

Credit:51000 (Cost of Goods Sold for item group A), USD 12

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

Credit:51000 (Cost of Goods Sold for item group C), USD 13

If you select the Item numberoption, then the value for each unique items 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

Debit: 13000 (Inventory for item 2), USD 7

Debit:13000 (Inventory for item 3), USD 10

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

Debit: 13000 (Inventory for item 5), USD 9

Credit: 51000 (Cost of Goods Sold for item 1), USD 5

Credit: 51000 (Cost of Goods Sold for Item 2), USD 7

Credit:51000 (Cost of Goods Sold for item 3), USD 10

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

Credit: 51000 (Cost of Goods Sold for Item 5), USD 9

Update ledger

Determine whether to post the adjustment to the ledger as a result of inventory close. If you do not select this option, you cannot reconcile inventory and ledger because the general ledger accounts associated with these adjusted transactions will not be updated. Therefore, you must determine the need for reconciliation before you clear this check box.

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 as well as 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, since the lowest level of the BOM structure is 5, then any cost changes that might have occurred on level 5 will not appear in the finished good item.

Minimum throughput adjustment

Works in conjunction with Maximum throughputs. The value entered for Minimum throughput adjustmentrepresents 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 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 greater than 2 and the minimum throughput adjustment is set to USD 5.00. If the Component B item has a settlement that is less than USD 5.00, 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 today is March 10; and inventory close was performed up to February 28. If the Run recalculation after closingoption is selected, then the system will close inventory as of February 28 and will run recalculation on the inventory transactions dated February 28 through March 10.