Monday, 26 January 2015

Inventory transaction statuses for Sales order in AX 2012

Inventory transactions consist of all the issue and receipt transactions associated with the selected product and product master.

When we process the order (sales, purchase etc.), inventory transaction status (Issue status and Receipt status) changes in each stage of the cycle.

Inventory transactions status reflects the actual state of particular quantity of inventory of a particular product i.e. whether it is On order, Ordered, Picked, RegisteredDeducted, Received, Sold, Purchased etc.

Here in this topic, we will see the inventory transactions status at various stages of a sales order cycle.

As it is a sales order, issue field in the inventory transaction form will get updated with the various statuses of the inventory.

Issue statuses are as follow:
1. Quotation issue
2. On order
3. Reserved ordered (The item is not available and is reserved from a purchase order)
4. Reserved physical (The item is available and is reserved for a sales order)
5. Picked
6. Deducted
7. Sold

Navigation path (to view the inventory transactions)
a. Go to Sales and marketing / Account receivable --> Common--> Sales orders --> All Sales orders --> Select desired sales order -->Edit --> go to Sales order lines --> Select desired line --> Click on Inventory --> Transactions.











b. Go to Product information management -->Common --> Released products --> Select desired product --> On the action pane, go to Manage inventory tab --> In the view group, click on Transactions.






Inventory (Issue) transactions status


A. At sales quotation
Once the Quotation is created and sent to the customer for approval, the transaction status goes to "Quotation issue" state.








Go to inventory--> Transactions






Note: Status will remain the same till the time sales quotation will not convert to sales order.

B. After creating a sales order
Once the quotation converts to a sales order, the inventory transaction status for a particular quantity of item goes to "On order" state.









Go to inventory --> Transactions








Note: Even if we directly create a sales order without using the sales quotation, the inventory transaction status goes to "On order" state only.


C. After the Sales order confirmation
After the confirmation of a sales order, the transaction status remains in "On order" state as confirmation doesn't affect the inventory by any means.






D. After posting the picking list
After posting the picking list, the inventory transaction status goes to "Reserved physical". The quantity of item gets reserved in the warehouse to get it picked for a sales order.









Note: Quantity needs to be available for the item in the warehouse in order to reserve them for the order. If the "Partial quantity" is available then the same quantity is only reserved for the order and remaining quantity will remain "On order".


E. After picking list registration

Once the item gets picked from the warehouse, the picking list will get updated with the picked quantity hence the inventory transactions status goes to "Picked " state.






F. After posting the packing slip
Once the packing slip gets posted, the inventory transactions status goes to "Deducted" state as the item gets delivered to the customer so inventory gets reduced for the item in the warehouse.









G. After posting the sales order invoice

Once the invoice is generated for a sales order, the inventory transaction status goes to "Sold" state. The same invoice is then send to the customer for payment.






Note:
Reserved ordered: If the item is not on hand then we can reserve the item from a purchase order so once the item is received from a vendor, it can only be used to deliver it to the customer.

We can also create a purchase order from a sales order in case of non-availability of the item.

In both the cases, the inventory transactions status goes to "Reserved ordered". 


In this way, Inventory (Issue) transactions status changes in each stage of sales order cycle.
  
Happy Daxing :-)

Sunday, 11 January 2015

Movement journal in AX 2012

Movement journal is used to move the inventory "in" and "out" of warehouse for specific reasons/purposes.


If the quantity is negative, it means item is taken out of inventory to be used by the Sales Department for some purpose, for example: to take it to a sales show. The inventory value must be reduced and should be considered as an expense from the Sales Department. Here expense account can be tagged as an offset account.

If the quantity is positive, meaning that the item is brought into inventory from an outside source, for example, a salesperson brings samples into inventory, the Cost amount field can be used to enter the value of the item.

Inventory movement journal is used:
1.  For intake (increase) and outtake (decrease) of the inventory.
2.  For Writing-off the inventory to specific main accounts such as "scrap".
3. To bring in opening inventory balances during system setup, and offset these adjustments to specific ledger accounts.
3. To charge an item to a different department, for example, from prototyping to engineering.

Financial impact
If the inventory is increase during movement then inventory profit and inventory receipt accounts will get updated with the inventory cost.

If the inventory is decrease during movement then inventory loss and inventory issue accounts will get updated with the inventory cost.

Steps to create inventory movement journal
1. Go to inventory management --> Journals --> Inventory transactions --> Click on Movement.
2. Click on "New" to create a new movement journal.















3. Select:
a. Name: Select journal name from the dropdown list.
b. Journal:It is a journal number generates automatically as the number sequence is set to "Continuous".
c. Description: It will come automatically from the journal name. We can also edit the same as per our requirement.

Note:Different journal name can be created (Inventory management --> Setup--> Journals--> Journal names, inventory) based on the type of inventory movement such as movement for display items in exhibition, Outward movement of items to scrap etc.

4. Click on "Lines" to add items in the journal lines.

























5. Enter:
a. Item number: Enter items which you want to move in/out of warehouse.

Inventory dimension
b. Storage dimension: Enter the Site, warehouse, location, pallet id. Here Site and warehouse are mandatory storage dimension. Location and pallet id can be entered or make it mandatory as per the requirement.
c. Tracking dimension: Enter batch number and serial number if mandatory.

d. Outward movement:
    i. Quantity: if the item is moving out of warehouse then negative quantity is entered.
    ii.Cost amount: If the quantity is negative, you cannot edit the value displayed in the cost amount/cost price field.

Note:Cost price is already present against the item when item is available in the inventory. While taking the item out, system will take the same cost price.

e. Inward movement:
   i. Quantity: If the item is moving in the warehouse, positive quantity is entered.
   ii. Cost price: If the quantity is positive then you can edit the value displayed in the cost amount/cost price field i.e you can enter the item cost in the cost amount/cost price fields.

f. Offset account: Select main account in the offset account field to offset the movement of item. 

NoteMain account keeps track of movement transactions. Different main accounts can be use for specific activities in the movement journal like  incoming or outgoing of items, to bring in opening balances for inventory, writing-off inventory as scrap.
  
g. Financial dimensions: Financial dimension will come automatically if it is setup against the item in the item master form. If it is not setup in the item master form then you need to add dimensions manually in financial dimension tab in movement journal.

Validate
6. Once all required information is entered, click on Validate button to validate the journal.






















7. Click Ok to Validate the journal.





















Note: If you get any errors, warnings then address them first and then re-validate again to check the journal.

Post
8. Click on Post button to post the journal to get an inventory and financial impact.





















Note:Place a checkmark if you want to transfer all the defective lines to a new journal.

9. Click Ok to post the journal.






















10. Go to Inventory --> transactions for journal line.






11. You can see 2 quantity is updated in the system i.e. 2 quantity is increased in the inventory for the item.
12. You can also see the cost amount updated is the same amount which we have entered manually against the item in the journal line.
13. Go to Ledger --> Financial voucher to see the financial impact.




14. In the above example, as the inventory is increased during movement, inventory profit and inventory receipt accounts are updated with the inventory cost. 

Note: Here system took the same offset account which we have selected manually in the movement journal for offsetting (inventory profit) purpose, instead of taking the account from the posting profile.(item --> manage costs -->select item group -->go to item group form --> Inventory tab --> profit). 

In this way, we can create and post a movement journal in AX 2012.

Please post if any queries or suggestions to be made on this topic.

Happy Daxing :-)

------------------------------------------------------------------------------------------------------------------------------------
Abhijeet Hele |  Dynamics AX Enthusiast | My Profile 

The information provided on this site represents my own opinion/view and does not represent the opinion/view of my employer or Microsoft.

Sunday, 4 January 2015

Inventory adjustment journal in AX 2012 (Profit and loss journal in old AX versions)

Hello Everyone,
In this topic, we are going to see the importance of creation & posting of inventory adjustment journal and its significance in business.

Inventory adjustment journal (Profit and loss journal) is use in AX for making the adjustment in inventory in order to maintain the inventory accuracy in the system. It is also use to write off inventory from the system.

Inventory adjustment journal is used when:
1.Item lost from the inventory.
2.Item gets damaged due to mishandling or by any other means.
3.Sometimes item which is lost or stolen can be found/recovered.

In order to match the quantity in the system with the actual physical quantity, the inventory adjustment journal is posted, there by we maintain the inventory accuracy.

Inventory adjustment journal automatically applies financial transactions to preset accounts for profit and loss.

Steps to create and post the adjustment journal:
1.Go to inventory management > Journals > Item transactions > Inventory adjustment.












2. Click on "New" to create new adjustment journal.
















3. Select:
a. Name: It is a journal name created for adjustment journal consist of setups like journal types, voucher series etc. which are necessary while creating a journal.
b.Journal: Journal number generates automatically as the number sequence is set to "Continuous" in this case.
c. Description: It will come automatically from the journal name. We can also edit the same as per our requirement.

3. Click on Lines to open the journal lines form.







4. Enter:
    a. Item number: Enter the item number for which adjustment needs to be done
    b. Storage dimension:Enter storage dimensions such as Site, warehouse, Location, pallet id.

   Note: Here Site and warehouse are the mandatory dimensions. Locations and pallet id can be entered if it is mandatory.

    c.Tracking dimension: Enter tracking dimensions such as batch number, serial number if mandatory.

5. Quantity and cost amount: if you are adding the inventory then enter the positive value in the quantity field. If the quantity is positive then you can edit the value displayed in the cost amount/cost price field.

6. Quantity and cost amount:if you are reducing the inventory then enter negative value in the quantity field. If the quantity is negative then you cannot edit the value displayed in the cost amount/cost price field.





7. If you want to post the adjustment for some other items then add some more lines in the journal.

Validate
8.Once all required information is entered, Click on validate button to validate the journal




















9. Click Ok for validation.













Note: If you get any error, warning  then address them first and then re-validate again to check the journal.

Post
10. Click on post button in order to post the journal.














Note:Place a checkmark if you want to transfer all the defective lines to the new journal.

11. Click Ok to post journal.













Inventory Transactions
12. Go to inventory >  transactions for the line which has negative quantity










13. You can see that the -2 quantity is updated in the system i.e. 2 quantity is reduced from the inventory and cost amount is calculated for the same automatically.

14. Go to inventory > transactions for the line which has positive quantity.






15. You can see that 3 quantity is updated in the system i.e. 3 quantity is added in the inventory and cost amount is also the same amount which we have entered in the journal lines.

Financial impact
16, Go to Inventory > transactions > Ledger > Financial voucher





17. If the inventory is increased during adjustment then inventory profit and inventory receipt accounts will get updated with the inventory cost.
18. If the inventory is reduced during adjustment then inventory loss and inventory issue accounts will get updated with the inventory cost.

Due to above reasons, the inventory adjustment journal is also called as profit and loss journal.

In this way, we can create and post the inventory adjustment journal.

Please post if any queries or suggestions to be made on this topic.

Happy Daxing :-)

------------------------------------------------------------------------------------------------------------------------------------
Abhijeet Hele |  Dynamics AX Enthusiast | My Profile 
The information provided on this site represents my own opinion/view and does not represent the opinion/view of my employer or Microsoft.