Dynamics 365 Finance
Category
Apr 3, 2024
Published date
Text
Article Type
AI Summary
- The article discusses the importance of understanding inventory valuation processes and settings in Microsoft Dynamics 365 Finance and Dynamics 365 Sales.
- The author focuses on a specific variant in the inventory valuation process, which is the 'Include Physical value' field on the 'Item model group'.
- The 'Include Physical value' field has a definitive impact on the inventory models FIFO, LIFO, and LIFO date, particularly in determining the value of physically updated transactions for the running average cost price and inventory closing calculations.
- The author provides examples and comparisons of the effects of enabling or disabling the 'Include Physical value' field on the running average cost price and COGS (Cost of goods sold) for inventory issues.
- The article emphasizes the significance of creating accurate Item model groups with the correct settings, including the 'Include Physical value' field, to ensure proper inventory valuation.
- The author explains the calculations for the running average cost price and COGS for released items with and without the 'Include Physical value' field enabled.
- The article highlights the differences in the inventory closing process for items with and without the 'Include Physical value' field enabled, particularly in terms of adjustments made to the COGS based on the FIFO principle.
- The author also briefly mentions the impact of the 'Include Physical value' field on the weighted average calculation methods.Overall, the article provides valuable insights into the 'Include Physical value' field and its effects on inventory valuation in Microsoft Dynamics 365 Finance and Dynamics 365 Sales.
Registered users can view the full text for FREE!
Sign In Now!