In this part we will discuss production costing with moving average. If you use moving average in production costing, costs can be based on the current costs of raw materials rather than on the cost price that was originally registered for the item master. When the finished good is reported as finished, the cost reflects the estimated product cost calculation that is executed by a release of production orders.
The original cost calculation of the finished good might have happened months ago, and thus it might be outdated. With moving average, the result of a product cost calculation that is executed during the estimation process can be adopted rather than the cost from the original cost calculation of the finished good.
This is the last part of the moving average costing method in Dynamics AX 2012. in this part we will discuss the reports which show how moving average was calculated.
If you sort transactions on the inventory value report according to transaction time, transactions are listed chronologically, and you can view the costs from a moving average perspective. This way, you can verify that the cost of a moving average product has not been changed retroactively, even though the product has, for example, been adjusted by using backdating.
After we discussed the Handling of price differences between a product receipt and the invoice in part 1 and Revaluation for moving average in part 2. in this post we will discuss the Backdating with moving average.
When you backdate a product receipt or an invoice, it is revalued to the current moving average cost. Also, a backdated issue is posted at the current moving average cost. With backdating, you cannot change the moving average going forward.
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.
In this series we are going to discuss the moving average costing method, by covering the following topics:
Part 1: Handling of price differences between a product receipt and the invoice.
Part 2: Revaluation for moving average.
Part 3: Backdating and moving average.
part 4: Production costing and moving average.
part 5: View how moving average was calculated.
first let's introduce the moving average costing method. Moving average is an inventory evaluation method that reevaluates inventory value in the chronological order of posting transactions, and it can be used to compute the average cost of the current ending inventory.
When a receipt transactions are included chronologically in the moving average calculation, according to the order in which the transactions are recorded in the system.
When Issue transactions are assigned the current active moving average cost at the time of recording, and the costs on inventory issues do not change even if the purchase costs (price in vendor Invoice ) change.
