Date weighted average costing by site in Dynamics AX

Here’s a typical setup for a Storage dimension group – if you use the demo hyper-v image you’ll recognise this setup.

I’m tracking Physical inventory by Site, Warehouse, and Location. But I’m only tracking Financial inventory by Site:

I’ve setup my item’s model group inventory cost model as ‘Weighted average date’ and I’ve posted two receipts at different cost into two warehouses. I’ve used an inventory journal in this example because it’s easy to enter – but in the real world these could be purchase order receipts at different purchase prices or with different freight charges; or production orders with different yields, or transfers in from other sites and warehouses.

To save you straining your eyes at that screen shot, I’ve received 10 units into warehouse 13 at a cost of $10.00 each, total $100.00. And I’ve received 10 units into warehouse 12 at a cost of $12.00 each, total $120.00. So site 1 has received 20 units, total cost $220.00, unit cost $11.00.

The ‘Dimension display’ button on the on-hand form lets me select the degree of detail which the on-hand form shows, and by selecting ‘Site’ I see the total for the site:

And the on-hand form shows me correctly that I’ve received 20, at a total cost of $220.00, unit cost $11.00.

Back on the overview I can select ‘Site’ and ‘Warehouse’, and the detail tab seems to show me the correct values for my receipts – well it does show me the correct totals for now, but this will soon end in tears.

Let’s issue some inventory – again for simplicity I’ll issue it all out and of course all my issues from site 1 are made at the current average cost ($11.00).

Now let’s check those on-hand displays again.

For the site everything makes sense:

No inventory left, no Physical cost amount, no Financial cost amount.

Let’s check the display at the warehouse level:

The zero Financial cost amount at the site level is actually the sum of the $10.00 from warehouse 12, and the -$10.00 from warehouse 13!

So the moral is: you can only rely on the cost totals on the On-hand form when you view the form at the level that you are tracking Financial inventory.

Below the level at which you track Financial inventory the cost displays on this form aren’t going to give you meaningful information.

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