D365 Finance & Operations and Dynamics AX Forum

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Stock postings - balance sheet and P&L

  • 1.  Stock postings - balance sheet and P&L

    Posted Mar 25, 2020 10:53 AM
    Hi all,

    I am not a finance person hence the reason for the post.

    We are a manufacturing company who bring in Raw materials, put them through operations to make a finished good. As I know production this is fairly straight forward - you order the required raw materials, book the delivery into stock, book out of stock and then consume during the manufacturing process and stock is back flushed on completion.

    From a financial point of view, is there a best practice solution so that the correct accounts are being debited and credited at the correct times.

    This is a step forward for our company as until now we have not really looked at the financial in and outs of our stock so any help anyone can be with this would be much appreciated.


    Fraser Kidd
    Livingston Precision Engineering (Ltd)
    Academy - Online Interactive Learning from Experts

  • 2.  RE: Stock postings - balance sheet and P&L

    Posted Mar 25, 2020 03:00 PM
    From a financial point of view, I think the vast majority of users opt to have D365 track inventory value in an on-going bases  (what's called  "perpetual inventory").

    This means in effect that the system keeps track of the financial impact of every inventory transaction you make (purchase, adjustment, sales etc.), and depending on your inventory valuation method you might just need to do a periodical adjustment using Inventory Closing.

    On a very (very) high level, and making lots of general assumptions, that requires you to:
    1. make sure correct cost per item is recording when purchasing / adjusting-in inventory.
    2. configure your inventory posting profiles:
     - On the purchase area - to record inventory receipts into inventory balance sheet accounts
     - On the sales area  - to record release from the inventory and entry into COGS expense account.
     - On inventory area - to record inventory adjustments as removing/adding to inventory and moving the balance to Inventory gain/loss expense account.

    Zvika Rimalt
    Functional Consultant
    Vancouver BC

    Academy - Online Interactive Learning from Experts

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