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Manufacturing & Distribution

THOUGHTWARE®

Understanding Inventory Posting Profiles in AX 2012 & Dynamics 365

August 30, 2018

THOUGHTWARE®

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To Receive CPE Credit

Individuals• Participate in entire webinar

• Answer polls when they are provided

Groups• Group leader is the person who registered & logged on to the webinar

• Answer polls when they are provided

• Complete group attendance form

• Group leader sign bottom of form

• Submit group attendance form to training@bkd.com within 24 hours of webinar• If all eligibility requirements are met, each participant will be emailed their

CPE certificate within 15 business days of webinar

Karen BodachDirectorkbodach@bkd.com | 317.383.4099

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Objectives

• Understand Physical vs. Financial Inventory

• Review Inventory Posting Profiles Setup

• Review Transactions That Post to the Ledger

Agenda

• Sales Order Posting

• Purchase Order Posting

• Production Posting

• Inventory Posting

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Physical vs. Financial Inventory

Examples of Physical Inventory Postings

• Sales Order – Pack Slip (shipped but not invoiced)

• Purchase Order – Receipt (rec’d but not invoiced)

• Production – Starting a Production Order/Reported as Finished (RAF’ed)

• Inventory Transfer Journals

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Examples of Financial Inventory Postings

Sales Order – Invoice

Purchase Order – Invoice

Production – Ended

Inventory – Inventory Journals

Why Do Model Groups Matter?

Path:/ Inventory Management > Setup > Inventory > Item Model Groups

• Is the product stocked or a service?

• How is the inventory valued?

• Is the product tracked physically/financially?

• Is deferred revenue posted at delivery?

• Is liability accrued on product receipt?

• How is negative inventory handled?

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Item Model Groups – Raw Mat’l Example

Item Model Groups – Expense Example

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Sales Order

Source: dreamworksanimation.com/

Sales Order SetupPath:/ Inventory Management > Setup > Posting > Posting

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Sales Order SetupPath:/ Inventory Management > Setup > Posting > Posting

AX 2012 D365FO Suggested Accounts

1 Sales, Packing Slip Cost of Units, Delivered Raw, Finished Goods

2 Sales Packing Slip Offset Cost of Goods Sold, Delivered Shipped Not Invoiced

3 Sales, Issue Cost of Units, Invoiced Raw, Finished Goods

4 Sales Order, Consumption Cost of Goods Sold, Invoiced COGS

5 Sales Order, Revenue Revenue Sales

6 Deferred Revenue on Delivery Deferred Revenue on Delivery

7 Deferred Revenue Offset on Delivery Deferred Revenue Offset on Delivery

Sales Order Setup

AX 2012 D365FO Suggested Accounts

1 Sales, Packing Slip Cost of Units, Delivered Raw, Finished Goods

2 Sales Packing Slip Offset Cost of Goods Sold, Delivered Shipped Not Invoiced

3 Sales, Issue Cost of Units, Invoiced Raw, Finished Goods

4 Sales Order, Consumption Cost of Goods Sold, Invoiced COGS

5 Sales Order, Revenue Revenue Sales

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Sales Order Setup

Sales Order Setup

AX 2012 D365FO Suggested Accounts

1 Sales, Packing Slip Cost of Units, Delivered Raw, Finished Goods

2 Sales Packing Slip Offset Cost of Goods Sold, Delivered Shipped Not Invoiced

3 Sales, Issue Cost of Units, Invoiced Raw, Finished Goods

4 Sales Order, Consumption Cost of Goods Sold, Invoiced COGS

5 Sales Order, Revenue Revenue Sales

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Sales Order Setup

AX 2012 D365FO Suggested Accounts

1 Sales, Packing Slip Cost of Units, Delivered Raw, Finished Goods

2 Sales Packing Slip Offset Cost of Goods Sold, Delivered Shipped Not Invoiced

3 Sales, Issue Cost of Units, Invoiced Raw, Finished Goods

4 Sales Order, Consumption Cost of Goods Sold, Invoiced COGS

5 Sales Order, Revenue Revenue Sales

Sales Order Setup

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Sales Order Setup

Sales Order Setup

AX 2012 D365FO Suggested Accounts

1 Sales, Packing Slip Cost of Units, Delivered Raw, Finished Goods

2 Sales Packing Slip Offset Cost of Goods Sold, Delivered Shipped Not Invoiced

3 Sales, Issue Cost of Units, Invoiced Raw, Finished Goods

4 Sales Order, Consumption Cost of Goods Sold, Invoiced COGS

5 Sales Order, Revenue Revenue Sales

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Sales Order Setup

Purchase Order

Source: nbc.com/

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Purchase Order SetupPath:/ Inventory Management > Setup > Posting > Posting

Purchase Order SetupPath:/ Inventory Management > Setup > Posting > Posting

AX 2012 D365FO Suggested Accounts

1 Product Receipt Cost of Purchased Materials Received Raw

2 Purchase Expenditure, Un-invoiced^ Purchase Expenditure, Un-invoiced^ǂ Rec’d Not Invoiced

3 Purchase, Inventory Receipt Cost of Purchased Materials Invoiced Raw

4 Purchase Expenditure for Product Purchase Expenditure for Product^ǂ Inventory Adj.

5 Purchase, Fixed Receipt Price Profit* Fixed Receipt Price Profit*

6 Purchase, Fixed Receipt Price Loss* Fixed Receipt Price Loss*

7 Purchase, Fixed Receipt Price Offset* Fixed Receipt Price Offset*

8 Purchase, Accrual^ Purchase, Accrual^ Rec’d Not Invoiced

9 Fixed Asset Receipt Fixed Asset Receipt

10 Purchase Expenditure for Expense Purchase Expenditure for Expense

11 Prepayment Prepayment

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Purchase Order Setup

AX 2012 D365FO Suggested Accounts

1 Product Receipt Cost of Purchased Materials Received Raw

2 Purchase Expenditure, Un-invoiced Purchase Expenditure, Un-invoiced Rec’d Not Invoiced

3 Purchase, Inventory Receipt Cost of Purchased Materials Invoiced Raw

4 Purchase Expenditure for Product Purchase Expenditure for Product Inventory Adj.

8 Purchase, Accrual Purchase, Accrual Rec’d Not Invoiced

Purchase Order Setup

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Purchase Order Setup

AX 2012 D365FO Suggested Accounts

1 Product Receipt Cost of Purchased Materials Received Raw

2 Purchase Expenditure, Un-invoiced Purchase Expenditure, Un-invoiced Rec’d Not Invoiced

3 Purchase, Inventory Receipt Cost of Purchased Materials Invoiced Raw

4 Purchase Expenditure for Product Purchase Expenditure for Product Inventory Adj.

8 Purchase, Accrual Purchase, Accrual Rec’d Not Invoiced

Purchase Order Setup

AX 2012 D365FO Suggested Accounts

1 Product Receipt Cost of Purchased Materials Received Raw

2 Purchase Expenditure, Un-invoiced Purchase Expenditure, Un-invoiced Rec’d Not Invoiced

3 Purchase, Inventory Receipt Cost of Purchased Materials Invoiced Raw

4 Purchase Expenditure for Product Purchase Expenditure for Product Inventory Adj.

8 Purchase, Accrual Purchase, Accrual Rec’d Not Invoiced

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Purchase Order Setup

Purchase Order Setup

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Purchase Order Setup

AX 2012 D365FO Suggested Accounts

10 Purchase Expenditure for Expense Purchase Expenditure for Expense

Purchase Order Setup

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Production Order

https://imgflip.com

Production Order SetupPath:/ Inventory Management > Setup > Posting > Posting

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Production Order SetupPath:/ Inventory Management > Setup > Posting > Posting

AX 2012 D365FO Suggested Accounts

1 Production, Picking List Estimated Cost of Materials Consumed Raw, FG

2 Production, Picking List Offset Estimated Cost of Materials Consumed, WIP WIP

3 Production, Report as Finished Estimated Manufactured Cost Raw, FG

4 Production, Report as Finished Offset Estimated Manufactured Cost, WIP WIP

5 Production, Issue Cost of Materials Consumed Raw, FG

6 Production, Issue Offset Cost of Materials Consumed, WIP WIP

7 Production, Receipt Manufactured Cost Raw, FG

8 Production, Receipt Offset Manufactured Cost, WIP WIP

Production Order Setup

AX 2012 D365FO Suggested Accounts

1 Production, Picking List Estimated Cost of Materials Consumed Raw, FG

2 Production, Picking List Offset Estimated Cost of Materials Consumed, WIP

WIP

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Production Order Setup

Production Order Setup

AX 2012 D365FO Suggested Accounts

3 Production, Report as Finished Estimated Manufactured Cost Raw, FG

4 Production, Report as Finished Offset

Estimated Manufactured Cost, WIP WIP

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Production Order Setup

Production Order Setup

AX 2012 D365FO Suggested Accounts

1 Production, Picking List Estimated Cost of Materials Consumed Raw, FG

2 Production, Picking List Offset Estimated Cost of Materials Consumed, WIP WIP

3 Production, Report as Finished Estimated Manufactured Cost Raw, FG

4 Production, Report as Finished Offset

Estimated Manufactured Cost, WIP WIP

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Production Order Setup

Production Order Setup

AX 2012 D365FO Suggested Accounts

5 Production, Issue Cost of Materials Consumed Raw, FG

6 Production, Issue Offset Cost of Materials Consumed, WIP WIP

7 Production, Receipt Manufactured Cost Raw, FG

8 Production, Receipt Offset Manufactured Cost, WIP WIP

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Production Order Setup

Production Order Setup

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Inventory

Source: Columbia Pictures, a Division of Sony Pictures (sonypictures.com)

Inventory SetupPath:/ Inventory Management > Setup > Posting > Posting

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Inventory SetupPath:/ Inventory Management > Setup > Posting > Posting

AX 2012 D365FO Suggested Accounts

1 Fixed Receipt Price Profit* Fixed Receipt Price Profit*

2 Fixed Receipt Price Loss* Fixed Receipt Price Loss*

3 Issue Inventory Issue Raw, FG

4 Loss Inventory Expenditure, Loss Inv. Profit/Loss

5 Receipt Inventory Receipt Raw, FG

6 Profit Inventory Expenditure, Profit Inv. Profit/Loss

7 Inter-Unit Payable‡ Inter-Unit Payable‡ Inter-Unit Payable

8 Inter-Unit Receivable‡ Inter-Unit Receivable‡ Inter-Unit Rec.

9 Price Difference for Moving Averageˠ Price Difference for Moving Averageˠ

10 Cost Revaluation for Moving Averageˠ Cost Revaluation for Moving Averageˠ

* = Only used when Fixed receipt is marked on the inventory model group. (Rarely used)

‡ = The Inter-unit payable and Inter-unit receivable accounts are used to post profit or loss incurred. This occurs when transferring between different product dimensions in the same site takes place, and when transferring between different sites. Profit or loss can occur. This occurs when different product dimensions have different costs, or if different sites have different costs for the same item.

ˠ = Only used when Moving Average is marked on the inventory model group.

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Inventory Setup

AX 2012 D365FO Suggested Accounts

3 Issue Inventory Issue Raw, FG

4 Loss Inventory Expenditure, Loss Inv. Profit/Loss

5 Receipt Inventory Receipt Raw, FG

6 Profit Inventory Expenditure, Profit Inv. Profit/Loss

Inventory Setup

AX 2012 D365FO Suggested Accounts

3 Issue Inventory Issue Raw, FG

4 Loss Inventory Expenditure, Loss Inv. Profit/Loss

5 Receipt Inventory Receipt Raw, FG

6 Profit Inventory Expenditure, Profit Inv. Profit/Loss

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Inventory Setup

AX 2012 D365FO Suggested Accounts

3 Issue Inventory Issue Raw, FG

4 Loss Inventory Expenditure, Loss Inv. Profit/Loss

5 Receipt Inventory Receipt Raw, FG

6 Profit Inventory Expenditure, Profit Inv. Profit/Loss

Inventory Setup

AX 2012 D365FO Suggested Accounts

3 Issue Inventory Issue Raw, FG

4 Loss Inventory Expenditure, Loss Inv. Profit/Loss

5 Receipt Inventory Receipt Raw, FG

6 Profit Inventory Expenditure, Profit Inv. Profit/Loss

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Inventory Setup

AX 2012 D365FO Suggested Accounts

3 Issue Inventory Issue Raw, FG

4 Loss Inventory Expenditure, Loss Inv. Profit/Loss

5 Receipt Inventory Receipt Raw, FG

6 Profit Inventory Expenditure, Profit Inv. Profit/Loss

Inventory Setup

AX 2012 D365FO Suggested Accounts

3 Issue Inventory Issue Raw, FG

4 Loss Inventory Expenditure, Loss Inv. Profit/Loss

5 Receipt Inventory Receipt Raw, FG

6 Profit Inventory Expenditure, Profit Inv. Profit/Loss

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Inventory Setup

AX 2012 D365FO Suggested Accounts

3 Issue Inventory Issue Raw, FG

5 Receipt Inventory Receipt Raw, FG

7 Inter-Unit Payable‡ Inter-Unit Payable‡ Inter-Unit Payable

8 Inter-Unit Receivable‡ Inter-Unit Receivable‡ Inter-Unit Rec.

Inventory Setup

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Inventory Setup

Inventory Setup

AX 2012 D365FO Suggested Accounts

3 Issue Inventory Issue Raw, FG

5 Receipt Inventory Receipt Raw, FG

7 Inter-Unit Payable‡ Inter-Unit Payable‡ Inter-Unit Payable

8 Inter-Unit Receivable‡ Inter-Unit Receivable‡ Inter-Unit Rec.

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Inventory Setup

AX 2012 D365FO Suggested Accounts

3 Issue Inventory Issue Raw, FG

5 Receipt Inventory Receipt Raw, FG

7 Inter-Unit Payable‡ Inter-Unit Payable‡ Inter-Unit Payable

8 Inter-Unit Receivable‡ Inter-Unit Receivable‡ Inter-Unit Rec.

Inventory Setup

AX 2012 D365FO Suggested Accounts

3 Issue Inventory Issue Raw, FG

5 Receipt Inventory Receipt Raw, FG

7 Inter-Unit Payable‡ Inter-Unit Payable‡ Inter-Unit Payable

8 Inter-Unit Receivable‡ Inter-Unit Receivable‡ Inter-Unit Rec.

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Inventory Setup

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Continuing Professional Education (CPE) Credit

BKD, LLP is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

The information contained in these slides is presented by professionals for your information only & is not to be considered as legal advice. Applying specific information to your situation requires careful consideration of facts & circumstances. Consult your BKD advisor or legal counsel before acting on any matters covered.

To Receive CPE Credit

• CPE credit may be awarded upon verification of participant attendance

• For questions, concerns or comments regarding CPE credit, please email the BKD Learning & Development Department at training@bkd.com

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