Sunday, August 30, 2015

AX 2012 | moving average costing method - Part 2

In part 1 we discussed how to set up moving average costing method, then we discussed  how moving average is handling of price differences between a product receipt and the vendor invoice.

Today we are going to learn how to revaluate cost for moving average. To proceed with the next example you must read part 1 of this series or at least do the setup which described there.

If your moving average value is inaccurate because of, for example, a posting mistake, you can adjust the unit price of the on-hand inventory at any time.

The moving average cost can only be adjusted as of the current date, so when you adjust the unit price of an item by using the following procedure, the adjustment date is always set to the current date. You cannot change the date when you post the adjustment.

When you adjust the moving average cost, the adjustment is posted to the Cost revaluation for moving average account. 

To adjust on-hand inventory value with moving average follow the steps below:

1- Go to Inventory and warehouse management > Periodic > Closing and adjustment.

2- Click Adjustment, and then click Revaluation for moving average.

3- Click Select to select the item D0007 (we used this item in part 1) to adjust,select the site check box and then click OK. The query only applies to the Product and Site financial inventory dimensions.

4- Enter 15 in the Unit cost field, the new unit price of the inventory item, and then click Post.

5- To see the accounting entries, close the Revaluation for moving average form, go back to Closing and adjustment form, select the adjustment transaction click ledger then select voucher.

6- as you can see the item moving average cost was updated by debiting the inventory and crediting the revaluation for moving average account with the difference between the the old cost (12) and the new cost (15).

7. please note that the revaluation for moving average account will be debited and the inventory account will be credited. for example repeat the steps from 1 to 4 to reduce the cost to 10. then check the voucher.

See you in part 3

See also