D365 Finance & Operations and Dynamics AX Forum

Hi Deb,

We did a change from standard to moving average last year.  Essentially what you need to do is:

Stop users from entering transactions

Clear open transactions:

For purchase orders:  either invoice the PO or reverse the receipt and clear anything in registered status
For sales orders:  Invoice the sales order or reverse the packing slip and clear anything that is in picked status
For production orders:  move any production orders to End status

Remove the items from inventory: We used count journals to bring the on-hand inventory to 0
Change the item model group to FIFO
Set the base price to your current standard cost
Bring the inventory back in:  These will be "found" at the base price that you set.
Re-receive the POs.  these will be received at whatever price is on the PO.

Let users start making transactions.

That is the process in a nutshell.

Hi Deb,

We did a change from standard to moving average last year.  Essentially what you need to do is:

Stop users from entering transactions

Clear open transactions:

For purchase orders:  either invoice the PO or reverse the receipt and clear anything in registered status
For sales orders:  Invoice the sales order or reverse the packing slip and clear anything that is in picked status
For production orders:  move any production orders to End status

Remove the items from inventory: We used count journals to bring the on-hand inventory to 0
Change the item model group to FIFO
Set the base price to your current standard cost
Bring the inventory back in:  These will be "found" at the base price that you set.
Re-receive the POs.  these will be received at whatever price is on the PO.

Let users start making transactions.

That is the process in a nutshell.

Hi Deb,

We did a change from standard to moving average last year.  Essentially what you need to do is:

Stop users from entering transactions

Clear open transactions:

For purchase orders:  either invoice the PO or reverse the receipt and clear anything in registered status
For sales orders:  Invoice the sales order or reverse the packing slip and clear anything that is in picked status
For production orders:  move any production orders to End status

Remove the items from inventory: We used count journals to bring the on-hand inventory to 0
Change the item model group to FIFO
Set the base price to your current standard cost
Bring the inventory back in:  These will be "found" at the base price that you set.
Re-receive the POs.  these will be received at whatever price is on the PO.

Let users start making transactions.

That is the process in a nutshell.

Hi Deb,

We did a change from standard to moving average last year.  Essentially what you need to do is:

Stop users from entering transactions

Clear open transactions:

For purchase orders:  either invoice the PO or reverse the receipt and clear anything in registered status
For sales orders:  Invoice the sales order or reverse the packing slip and clear anything that is in picked status
For production orders:  move any production orders to End status

Remove the items from inventory: We used count journals to bring the on-hand inventory to 0
Change the item model group to FIFO
Set the base price to your current standard cost
Bring the inventory back in:  These will be "found" at the base price that you set.
Re-receive the POs.  these will be received at whatever price is on the PO.

Let users start making transactions.

That is the process in a nutshell.

Hi Deb,

We did a change from standard to moving average last year.  Essentially what you need to do is:

Stop users from entering transactions

Clear open transactions:

For purchase orders:  either invoice the PO or reverse the receipt and clear anything in registered status
For sales orders:  Invoice the sales order or reverse the packing slip and clear anything that is in picked status
For production orders:  move any production orders to End status

Remove the items from inventory: We used count journals to bring the on-hand inventory to 0
Change the item model group to FIFO
Set the base price to your current standard cost
Bring the inventory back in:  These will be "found" at the base price that you set.
Re-receive the POs.  these will be received at whatever price is on the PO.

Let users start making transactions.

That is the process in a nutshell.

Hi Deb,

We did a change from standard to moving average last year.  Essentially what you need to do is:

Stop users from entering transactions

Clear open transactions:

For purchase orders:  either invoice the PO or reverse the receipt and clear anything in registered status
For sales orders:  Invoice the sales order or reverse the packing slip and clear anything that is in picked status
For production orders:  move any production orders to End status

Remove the items from inventory: We used count journals to bring the on-hand inventory to 0
Change the item model group to FIFO
Set the base price to your current standard cost
Bring the inventory back in:  These will be "found" at the base price that you set.
Re-receive the POs.  these will be received at whatever price is on the PO.

Let users start making transactions.

That is the process in a nutshell.

• All production orders ended
• All pending inventory transactions posted or deleted
• All purchase orders that have been received for these items need to be fully invoiced
• Any sales order where these items are on need to be fully invoiced
• I recommend deleting any pending inventitemprice records too for these items

Once you have finalized the transactions, you'll want to go to the Inventory management > Inquiry > Transactions grid and re-confirm all records show a date populated in the financial date field. If everything is dandy, count out the inventory via counting/movement/adjustment journal, run a recalculation/month-end close job, then go to the released products and change the item model group.

Now, if you get this error message:

'The item is set to be evaluated by inventory model "Standard cost". The system cannot convert the item to be evaluated by an inventory model of type "Transactions settled" only inventory models of type "Transactions not settled ...."

You'll need to get with a developer to temporarily remove that logic check in order to proceed. Again, not the most advised route to take, but it'll get the job done. Creating new items entirely may be the route to go if you want to avoid all of the outlined items.

Once you're on FIFO pricing, I'd recommend some of the following

• Run a recalculation often, most of my clients opt-in to do this nightly
• Review the production control parameters and enable the 'use estimated cost price' and 'price calculation' flags
• Create a costing version for planned costs and create a pricing fallback for your FIFO items