api.ning.comapi.ning.com/.../LabCosteoDeInventariosingles.docx · Web viewLab time: 55 minutes Note that hands-on labs for the Inventory Costing and Valuation in Microsoft Dynamics

Chapter 1: Hands-On Lab: Introduction to Inventory Costing

CHAPTER 1: HANDS-ON LAB: INTRODUCTION TO INVENTORY COSTINGObjectives

The objectives are:

Introduce the fundamental costing functionality in Microsoft Dynamics® AX 2012.

Set up an item model group. Explain each inventory costing model.

IntroductionThe objective of this Hand-on Lab (HOL) is to explore, at your own pace, the principles of inventory costing in Microsoft Dynamics® AX 2012. This HOL highlights the following topics:

Setting up item model groups Selecting an inventory model for your business

Lab time: 55 minutes

Note that hands-on labs for the Inventory Costing and Valuation in Microsoft Dynamics AX 2012 contain dependencies, which means that some data that you set up or create in one lab can be used in other labs. Therefore, it is recommended that you perform all six labs on a single virtual machine (VM) in a sequential order. You can download the VM with Microsoft Dynamics AX 2012 using the following link:

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Hands-on Lab Costing and Inventory Valuation in Microsoft Dynamics® AX 2012

Prerequisite Knowledge

To successfully complete this HOL, you will need to have an understanding of how to use the principles and mechanisms from cost management in Microsoft Dynamics AX 2012. Additionally, you must have a general understanding of the basic inventory accounting principles and the underlying inventory costing methods, and valuation principles.

Inventory Costing FunctionalityIn Microsoft Dynamics AX 2012, the inventory costing system provides the effective performance and accuracy of costing and inventory valuation. The value that the inventory is calculated at is determined by the method chosen in the inventory model group.

The standard cost framework used for inventory valuation requires that the inventory close process be performed. The inventory costing system contains tools that include the indirect costs that are involved in the full absorption of production costs and the cost of purchases. Additionally, an overview is made available for all the costs involved in a production or purchase order. The close process also calculates variances on production and purchase order receipts.

Fundamental Cost Issue

A costing issue companies could experience is that they do not necessarily know the cost of their items when they are sold. Sometimes companies must operate with estimated and forecasted costs if they have issues with items before the purchase order (or production order) for the items are invoiced posted.

Companies can handle this issue in two ways.

Operate with a politically selected cost (standard cost) Recalculate and adjust the used (estimated) cost when they learn the

actual price of the receipt

System Setup

Before you can calculate the cost of your inventory, many aspects of the system must be configured, including deciding on the costing method(s) to use.

When deciding on the costing method to use, many factors should be considered, such as tax benefits and reporting, financial reporting, and how your inventory should be valued.

If you do not use standard costing for an item, the system will calculate the running weighted average on issue transactions (such as sales orders). Then when you run the inventory close process the transactions will be updated according to the inventory model that you have selected for the item.

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In a standard cost scenario, the system will automatically use the standard cost for both issues and receipts. When the inventory close is processed for these types of item, the system will make adjustments for production variances and close the inventory to prevent the posting of transactions in the prior period.

The following topics review the inventory models that are available in Microsoft Dynamics AX 2012, and how the system makes settlements during the inventory closing process. The Standard cost method is reviewed in more detail in the “Standard Costing Hands-on Lab.”

Scenario: Item Model GroupsItem model groups contain settings that determine how items are controlled and handled on item receipts and issues. An item model group can be associated with many different products. This facilitates maintenance, since many products areoften controlled with the same setup.

To access this Item model groups form open Inventory and warehouse management > Setup > Inventory > Item model groups.

NOTE: When you set up and assign item model groups to products, be aware of the restrictions that might apply if you change the setup. If a product has open transactions, you might receive a warning and be unable to complete the following tasks.

Change parameters for the associated item model group

Select a different item model group for the product

Exercise 1: Select an Inventory Model

An inventory model typically is assigned to an item when you are finalizing the released product.

To view the inventory models, follow these steps.

1. Open Inventory and warehouse management > Setup > Inventory > Item model groups.

2. Select an inventory model group from the list.

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3. Click the Inventory model tab. 4. Note the model in the Inventory model field.

FIGURE 1.1 ITEM MODEL GROUP FORM

Name the six inventory models that are available in Microsoft Dynamics AX 2012.

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FIFO

First in, First out (FIFO) is an inventory model in which the cost of the first acquired receipts are settled against the first issue. Financially updated issues from inventory are settled against the first financially updated receipts into inventory, based on the financial date of the inventory transaction.

Considerations when using FIFO

When using FIFO, you have the option of marking inventory transactions so that a specific receipt is settled against a specific issue instead of following the FIFO rule.

It is recommended to use a periodic inventory closing when you use the FIFO inventory model.

The following examples illustrate the effect of using FIFO with three different configurations.

FIFO without the Include physical value option FIFO with the Include physical value option FIFO with marking

Scenario: FIFO Without the Include Physical Value

In this FIFO example, the item model group is not marked to include physical value. The following transactions are illustrated in the FIFO Without Include Physical Value figure later in this section.

Transaction number

Inventory quantity

Cost United States Dollar (USD)

1a (Physical) 1 receipt 10.00 each

1b (Financial) 1 receipt 10.00 each






5a (Physical) 1 issue 20.00 each

5b (Financial) 1 issue 20.00 each

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Inventory close is performed. Based on the FIFO method, the first financially updated issue will be settled to the first financially updated receipt. An adjustment of 10.00 USD will be made on the issue transaction.

The new running average cost reflects the average of the financially updated transactions.

The FIFO Without Include Physical Value figure illustrates this series of transactions when the FIFO inventory model is used without the Include physical value option.

FIGURE 1.2 FIFO WITHOUT INCLUDE PHYSICAL VALUE

DIAGRAM KEY: The following list describes how to read the diagram.

Inventory transactions are represented by vertical arrows.

Receipts into inventory are represented by vertical arrows above the timeline.

Issues out of inventory are represented by vertical arrows below the timeline.

To the left of each vertical arrow, the value of the inventory transaction is specified in the format Quantity@Unitprice.

An inventory transaction value enclosed in brackets indicates that the inventory transaction is physically posted into inventory.

An inventory transaction value without brackets indicates that the inventory transaction is financially posted into inventory.

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Each new receipt or issue transaction is designated with a new label. Each vertical arrow is labeled with a sequential identifier, such as 1a.

The identifiers indicate the sequence of inventory transaction postings in the timeline.

Inventory closings are represented by a red vertical dashed line and the label Inventory Close.

Settlements that are performed by inventory close are represented by dotted red arrows going diagonally from a receipt to an issue.

Scenario: FIFO With the Include Physical Value

If the Include physical value check box is selected for an item in the Item model group form, Microsoft Dynamics AX uses both physical and financial receipt transactions to calculate the running average cost. Where applicable, the system also makes adjustments to the physically updated issue transaction. When the Include physical value check box is cleared, inventory close with the FIFO inventory model will make settlements only to transactions that are financially updated.

The following transactions are illustrated in the FIFO with Include Physical Value figure later in this section.

Transaction number Inventory quantity Cost USD









5b (Financial) 1 issue 21.25 each


Inventory close is performed. Based on the FIFO method, the first financial issue transaction will be adjusted or settled to the first updated receipt, either financial or physical.

Transaction 5b will be settled to receipt transaction 1b. There will be an adjustment of 11.25 USD to this issue transaction. Additionally, transaction 2b is matched to transaction 6a. An adjustment is made in the amount of 1.25 USD .

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However, a settlement is not made between these transactions because the 6a is not financially updated.

The new running average cost reflects the average of the financially and physically updated transactions, 27.50 USD.

The FIFO with Include Physical Value figure illustrates this series of transactions when the FIFO inventory model is used with the Include physical value option.

FIGURE 1.3 FIFO WITH INCLUDE PHYSICAL VALUE

Scenario: FIFO With Marking

In Microsoft Dynamics AX, you can use marking to link, or mark, an issue transaction to a receipt transaction. Additionally, you can use marking to make sure of the exact cost of the inventory when the transaction is posted or when the inventory close is performed. Marking can occur before or after a transaction is posted.

Suppose the Customer Service Department accepted a rush order from an important customer. Because this is a rush order, you must pay more for this item to service your customer’s request. You must be certain that the cost of this inventory item is reflected in the margin, or cost of goods sold (COGS), for this sales order invoice.

When the purchase order is posted, the inventory is received at a cost of 120.00 USD. If this sales order document is marked to the purchase order before the packing slip or invoice is posted, the COGS will be 120.00 USD instead of the current running average cost for the item. If the sales order packing slip or invoice is posted before the marking occurs, the COGS will be posted at the running average cost.

Before inventory close is performed, these two transactions can still be marked to each other.

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When a receipt transaction matches an issue transaction, the valuation method defined in the item model group is disregarded, and Microsoft Dynamics AX settles these transactions to each other.

NOTE: For more information about inventory marking, refer to the Supply Chain Foundation in Microsoft Dynamics AX 2012.

Example: FIFO With Marking

In the following example, it is assumed that FIFO is the inventory model used and that the Include physical value check box is selected. The following transactions are illustrated in the FIFO with Marking Example figure later in this section.

Transaction number Inventory quantity Cost USD









5b* (Financial) 1 issue 20.00 each*


5b*: The inventory financial issue for a quantity of 1 is marked to inventory receipt 2b before the transaction is posted. This transaction is posted at a cost of 20.00 USD each.

Inventory close is performed. Because the financially updated FIFO transaction is marked to an existing receipt, these transactions are settled to each other, and no adjustment is made. Additionally transaction 1b is matched with transaction 6b. An adjustment is made for 11.25 USD. However no settlement is made because transaction 6a is not financially updated.

The new running average cost reflects the average of the financially and physically updated transactions, 27.50 USD.

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The FIFO with Marking Example figure illustrates this series of transactions when the FIFO inventory model is used with marking between issues and receipts.

FIGURE 1.4 FIFO WITH MARKING EXAMPLE

Exercise 1: Create an Inventory Model

Ken, the Controller, has decided that Contoso will use FIFO with the -Include physical value option selected for all new stocked products. Create a new item model group with the necessary settings.

1. Open Inventory and warehouse management > Setup > Inventory > Item model groups.

2. Click New to create a new item model group. 3. Type "FIFOPV" in the Item model group field. 4. Type "FIFO with Include Physical Value" in the Name field. 5. Click the Inventory model FastTab. 6. Select FIFO in the Inventory model field. 7. Select the Include physical value check box.

LIFO

Last in, First out (LIFO) is an inventory model in which the last (newest) receipts are issued first. Issues from inventory are settled against the last receipts into inventory based on the date of the inventory transaction.

When using LIFO, you have the option of marking inventory transactions so that a specific item issue is settled against a specific receipt instead of using the LIFO rule.

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Exercise 2: LIFO Without the Include Physical Value

If the Include physical value check box is selected for an item in the Item model groups form, Microsoft Dynamics AX will use both physical and financial receipt transactions to calculate the running average cost. Where applicable, the system will also make adjustments to the physically updated issue transaction. When the Include physical value check box is cleared, the inventory close with the LIFO inventory model will make settlements only to transactions that are financially updated.

Examine the LIFO Without Include Physical Value figure and then answer the questions about the scenario.

FIGURE 1.5 LIFO WITHOUT INCLUDE PHYSICAL VALUE

What is the amount of the adjustment that is made for transaction 5b when the inventory close is run?

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What is the new running average cost of the financially updated transactions?

Exercise 3: LIFO With the Include Physical Value

If the Include physical value check box is selected for an item in the Item model groups form, Microsoft Dynamics AX will use both physical and financial receipt transactions to calculate the running average cost. Where applicable, the system will also make adjustments to the physically updated issue transaction. When the Include physical value check box is cleared, the inventory close with the LIFO inventory model will make settlements only to transactions that are financially updated.

Examine the LIFO With Include Physical Value figure and then answer the questions about the scenario.

FIGURE 1.6 LIFO WITH INCLUDE PHYSICAL VALUE

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The new running average cost after running the inventory close reflects the average of the financially and physically updated transactions at 20.00 USD.

Based on using the LIFO principle and the include physical value selected, which issue transaction(s) will be settled with receipt transaction(s), and by how much will the issue(s) be adjusted?

Exercise 4: LIFO With Marking

Marking with LIFO works in the same general way that marking with FIFO works; this means the settlements are not made using the LIFO principle. Instead, the settlements are made by using the specific transactions that are marked against each other, even if the marked transactions do not follow the LIFO principle.

In the LIFO Marking figure, the item model group is not marked to include the physical value. Additionally, transaction 5b for a quantity of one is marked to the inventory receipt 2b before the transaction is posted.

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Examine the LIFO Marking figure and then answer the questions about the scenario.

FIGURE 1.7 LIFO MARKING

In the example provided, the marking is completed before the transaction is posted. Now suppose that the marking is not completed before the transaction is posted.

1. What would the unit price of transaction 5b be at the time of posting? 2. What would be the affect of marking transaction 5b with transaction

2b after transaction 2b is posted?

Which form is used for marking two transactions against each other after the issue is posted?

( ) Marking form( ) Transactions on item form( ) Inventory transaction adjustment form

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( ) Transactions cannot be marked after the issue is posted

LIFO Date

Last in, First out Date (LIFO Date) is an inventory model based on the LIFO principle. Issues from inventory are settled against the last receipts into inventory based on the date of the inventory transaction. By using LIFO Date, if there is no receipt before the issue, the issue is settled against any receipts that occur after the date of the issue. Several issues on the same date might be settled in the order of last issue, last receipt.

Example: LIFO Date Without the Include Physical Value

In the LIFO Date Without Include Physical Value figure, the item model group is not marked to include the physical value.

FIGURE 1.8 LIFO DATE WITHOUT INCLUDE PHYSICAL VALUE

When the Inventory close is performed, based on the LIFO Date method, the last financially updated issue will be settled to the last financially updated receipt by date. An adjustment of 5.00 USD will be made on the 4b issue transaction. Transactions 4b and 2b are settled against each other.

The new running average cost reflects the average of the financially updated transactions at 15.00 USD.

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Exercise 5: LIFO Date With the Include Physical Value

In this LIFO Date scenario, the item model group is marked to include physical value.

Examine the LIFO With Include Physical Value figure and then answer the questions about the scenario.

FIGURE 1.9 LIFO DATE WITH INCLUDE PHYSICAL VALUE

After the inventory close is based on using the LIFO date principle with the Include physical value check box selected, what happens to transaction 4b?

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Weighted Average

Weighted average is an inventory model based on the weighted average principle. Issues from inventory are valued at the average value of the items that are received into inventory during the inventory closing period, plus any on-hand inventory from the previous period.

When you run an inventory closing, all receipts are settled against a virtual issue that holds the total received quantity and value. This virtual issue has a corresponding virtual receipt from which the issues are settled, so all issues receive the same average cost. The virtual issue and receipt can be viewed as a virtual transfer, which is named the weighted average inventory closing transfer.

If there is only one receipt, all issues can be settled from it and the virtual transfer will not be created.

When using the weighted average, you can mark inventory transactions so that a specific item receipt is settled against a specific issue, instead of using the weighted average rule.

It is recommended to use a monthly inventory closing when you use the weighted average inventory model.

In Microsoft Dynamics AX, the weighted average inventory costing method is calculated by the following formula.

Weighted average = (Q1*P1 + Q2*P2 + Qn*Pn) / (Q1 + Q2 + Qn)

Inventory transactions leaving the inventory are referred to as issues. This includes sales orders, inventory journals, and production orders, and they occur at an estimated cost on the posting date. This estimated cost is also referred to as running average.

At the time of inventory close, Microsoft Dynamics AX will analyze the inventory transactions for previous and current periods and determine which of the following closing principles should be used.

Direct settlement Summarized settlement

Settlements are inventory close postings that adjust the issues to the correct weighted average as of the closing date.

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The following examples illustrate the effect of using weighted average with five different configurations.

Weighted average direct settlement without the Include physical value option

Weighted average summarized settlement without the Include physical value option

Weighted average direct settlement with the Include physical value option

Weighted average summarized settlement with the Include physical value option

Weighted average with marking

Example: Weighted Average Direct Settlement Without Include Physical Value

When using the direct settlement principle, the system will settle directly between receipts and issues. There is no parameter to select the direct settlement principle. Instead, Microsoft Dynamics AX uses this direct settlement principle automatically in certain specific situations.

When one receipt and one or more issues is posted in the period When only issues are posted in the period and the inventory contains

on-hand items from a previous closing

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In the scenario in the following sections, a financially updated receipt and issue are already posted. During inventory close, Microsoft Dynamics AX will settle the receipt directly against the issue, and no adjustment to the cost is needed on the issue.

FIGURE 1.10 WEIGHTED AVERAGE DIRECT SETTLEMENT WITHOUT INCLUDE PHYSICAL VALUE

Example: Weighted Average Summarized

In Microsoft Dynamics AX, the weighted average uses the settlement principle where all receipts within a closing period are summarized into a transaction called weighted average inventory closing. All the receipts for the period will be settled against the issue of the newly created inventory transfer transaction. All issues for the period will be settled against the receipt of the new inventory transfer transaction.

If the on-hand inventory is positive after the inventory close, that on-hand inventory and value of the inventory are summarized on the new inventory transfer transaction (receipt).

If the inventory on-hand is negative after the inventory close, the on-hand inventory and value of the inventory is the sum of individual issues that are not fully settled.

In the following scenario, several financially updated receipts and one issue are posted.

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During inventory close, Microsoft Dynamics AX will generate and post the summarized inventory transfer transaction and settle the receipts for the period against the summarized inventory transfer issue transaction. All the issues posted for the period will be settled against the summarized inventory transfer receipt transaction. The weighted average is calculated to be 15.00 USD.

The issue is originally posted with an estimated cost of 14.67 USD, so an adjustment of negative 0.33 USD will be created and posted on the issue. As of the inventory closing date, the on-hand inventory is three pieces with a value of 45.00 USD.

FIGURE 1.11 WEIGHTED AVERAGE SUMMARIZED SETTLEMENT WITHOUT INCLUDE PHYSICAL VALUE

When the Inventory close is performed, transaction 5a is created. The transaction is a financial issue that is created to sum the settlements of all the inventory financial receipts. Then transaction 5b is created as the offset to transaction 5a.

Other Weighted Average Scenarios

Weighted Average Direct Settlement With the Include Physical Value Option

In Microsoft Dynamics AX 2012, the parameter Include physical value works differently with the weighted average inventory model than in earlier versions of the product.

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When you select the Include physical value check box for an item in the Item model group form, Microsoft Dynamics AX will use physically updated receipts when calculating the estimated cost, or running average. Issues will be posted based on this estimated cost during the period. During the inventory close, only financially updated receipts will be considered in the weighted average calculation.

FIGURE 1.12 WEIGHTED AVERAGE DIRECT SETTLEMENT WITH THE INCLUDE PHYSICAL VALUE OPTION

When the Inventory close is performed, Microsoft Dynamics AX will disregard all inventory transactions that are physically updated. Instead, it will use the direct settlement principle because only one financial receipt exists. An adjustment of 2.50 USD will be posted to the inventory transaction that is financially issued as of the inventory closing date. After the inventory close, the on-hand inventory will be a quantity of one with a running average cost of 15.00 USD.

Weighted Average Summarized Settlement With the Include Physical Value

Select the Include physical value check box for an item in the Item model group form. Then Microsoft Dynamics AX will use physically updated receipts in the calculation of estimated cost, or in the running average. Issues will be posted based on this estimated cost during the period. During the inventory close, only financially updated receipts will be considered in the weighted average calculation.

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In this weighted average summarized settlement example, the inventory model is marked to include the physical value.

FIGURE 1.13 WEIGHTED AVERAGE SUMMARIZED SETTLEMENT WITH THE INCLUDE PHYSICAL VALUE

When the Inventory close is performed, Microsoft Dynamics AX will disregard all inventory transactions that are physically updated. The summarized settlement principle will be used because only one financial receipt exists. An adjustment of 1.50 USD will be posted to the inventory transaction that is financially issued as of the inventory closing date. After the inventory close, the on- hand inventory will be a quantity of three with a running average cost of 15.00 USD.

When the Inventory close is performed, transaction 6b is created. The transaction is a financial issue that is created to sum the settlements of all the inventory financial receipts. Then transaction 6b is created as the offset to transaction 6a.

Weighted Average Date

Weighted average date is an inventory model based on the weighted average principle. However, issues from inventory are valued at the average value of the items that are received into inventory for each separate day in the inventory closing period.

When you run an inventory closing with weighted average date, all daily receipts are settled against a virtual issue. This holds the total received quantity and value for that day. This virtual issue has a corresponding virtual receipt from which the issues will be settled, so that all issues receive the same average cost. The virtual issue and receipt can be viewed as a virtual transfer, which is named the weighted average inventory closing transfer.

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If only one receipt occurs on or before the date, you do not have to value the average, because all issues are settled from it and the virtual transfer will not be created. Additionally, if only issues occur on the date, there are no receipts from which to value the average, and the virtual transfer will not be created.

When you use weighted average date, you can mark inventory transactions so that a specific item receipt is settled against a specific issue. This means you do not use the weighted average date rule.

In Microsoft Dynamics AX, the weighted average date costing method is calculated by the following formula.

Weighted average = (Q1*P1 + Q2*P2 + Qn*Pn) / (Q1 + Q2 + Qn)

During inventory close, the calculation will be executed daily through the closing period as illustrated in the Weighted Average Date figure.

FIGURE 1.14 WEIGHTED AVERAGE DATE

Exercise 6: Weighted Average Date

Weighted average date in Microsoft Dynamics AX is based on the principle that all receipts within in a closing period are summarized into a new inventory transfer transaction. This transaction is named weighted average inventory closing. All the receipts for the day will be settled against the issue of the newly created inventory transfer transaction. All issues for the day will be settled against the receipt of the new inventory transfer transaction.

If the on-hand inventory is positive after the inventory close, that on-hand inventory and value of the inventory are summarized on the new inventory transfer transaction receipt.

If the inventory on-hand is negative after the inventory close, the on-hand inventory and value of the inventory is the sum of the individual issues that are not fully settled.

In the following scenario, several financially updated receipts and issues are posted during the period. During the inventory close, Microsoft Dynamics AX evaluates each day to determine how each day should be treated by closing.

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Examine the Weighted Averages Date Direct Settlement With Include Physical Value figure and then answer the questions about the scenario.

FIGURE 1.15 WEIGHTED AVERAGES DATE DIRECT SETTLEMENT WITH INCLUDE PHYSICAL VALUE

Explain why the inventory close transactions 6a and 6b are for a quantity of two.

Standard Cost

Standard cost is an inventory valuation method that is based on the standard cost principle. However, inventory receipts and issues are valued using an item's active standard cost. Variances capture the differences that arise between an item's standard cost and the actual cost of transactions.

Manual marking does not apply with the items that use the standard cost valuation method. The standard cost inventory model is discussed in more detail in the "Standard Costing, Costing Versions, and Costing Sheets" chapter in this course.

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SummaryMicrosoft Dynamics AX 2012 provides six inventory models for determining the cost of your inventory items. An item model group can be associated with many different products. When the Stocked product flag is not selected for an item model group, the items assigned to that group are not tracked in the inventory.

It is important to carefully consider the item model groups that you will create and select for each item because after transactions are created, you cannot change the item model group.

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Quick Interaction: Lessons LearnedTake a moment and write down three key points you have learned from this chapter

1.

2.

3.

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SolutionsScenario: Item Model Groups

Name the six inventory models that are available in Microsoft Dynamics AX 2012.

MODEL ANSWER:

1. FIFO2. LIFO3. LIFO date4. Weighted average5. Weighted average date6. Standard cost

What is the amount of the adjustment that is made for transaction 5b when the inventory close is run?

MODEL ANSWER:

An adjustment of 8.25 USD will be made on the issue transaction because transaction 4b is settled against transaction 5b (30.00 - 21.25 = 8.25).

What is the new running average cost of the financially updated transactions?

MODEL ANSWER:

The new running average cost reflects the average of the financially updated transactions is 15.00 USD because (10 + 20) / 2 = 15.

Based on using the LIFO principle and the include physical value selected, which issue transaction(s) will be settled with receipt transaction(s), and by how much will the issue(s) be adjusted?

MODEL ANSWER:

Transaction 6a will be adjusted to receipt transaction 4b. The system will not settle these transactions because the receipt is only physically updated and it is not financially updated. Instead, only an adjustment of 8.75 USD will be posted to the physical issue transaction.

Transaction 5b will be adjusted to physical receipt transaction3a. The system will not settle these transactions because both are not financially updated. Instead, only an adjustment of negative 8.75 USD will be made to this issue transaction.

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In the example provided, the marking is completed before the transaction is posted. Now suppose that the marking is not completed before the transaction is posted.

3. What would the unit price of transaction 5b be at the time of posting? 4. What would be the affect of marking transaction 5b with transaction

2b after transaction 2b is posted?

MODEL ANSWER:

1. 1 @ 21.25 USD 2. An adjustment of 1.25 USD is made to transaction 5b

Which form is used for marking two transactions against each other after the issue is posted?

( ) Marking form() Transactions on item form( ) Inventory transaction adjustment form( ) Transactions cannot be marked after the issue is posted

After the inventory close is based on using the LIFO date principle with the Include physical value check box selected, what happens to transaction 4b?

MODEL ANSWER:

Transaction 4b will not be settled with transaction 2b because the financial receipt of transaction 2b is not posted. Instead, an adjustment of 6.67 USD will be made on the issue transaction 4b.

Explain why the inventory close transactions 6a and 6b are for a quantity of two.

MODEL ANSWER:

The quantity of two is the current on-hand quantity at the time of the inventory close. This is calculated by taking the sum of the receipts minus the sum of the issues. In this example that is ((3+3+1+1) = 8 for the receipts) minus ((1+1+1+1+1+1) = 6 for the issues) = 2.

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Documents

api.ning.comapi.ning.com/.../LabCosteoDeInventariosingles.docx · Web viewLab time: 55 minutes Note that hands-on labs for the Inventory Costing and Valuation in Microsoft Dynamics