Inventory Management in Dynamics AX
03 Feb 2015
In this post we’ll be looking at the various processes involved in inventory management in Dynamics AX 2012. As you know, in any inventory management system the most common operations are stock movement, stock transfers, adjustment, picking etc. Similarly for inventory management in Dynamics AX 2012, there are 3 types of journals available under Inventory Transactions, for handling these types of transactions. Although these journals are fairly similar in nature, there are certain differences between them. Let’s take a look at these in detail.
Inventory Management in Dynamics AX 2012 – Inventory Movement Journal
When you use the inventory movement journal, you can also add cost to an item when you move its inventory. You need to allocate this additional cost to a particular General Ledger (GL) account manually though, i.e. not as per the predefined posting profile.
The inventory movement journal can be used to:
- Bring in opening balances
- Post additional cost to an offset (GL) account manually (not as per the predefined posting profile)
- Increase or reduce inventory quantity
- Add cost to an item when you move its inventory.
Inventory Management in Dynamics AX 2012 – Inventory Adjustment Journal
In previous version of Dynamics AX, this journal type was specified as the Profile/Loss journal. In Dynamics AX 2012 though this is now known as the inventory adjustment journal. It is typically used to:
- Increase or reduce inventory
- To add cost to an item when you move its inventory
- To post additional cost automatically to a particular general ledger (GL) account, as per the Item group posting profile
Inventory Management in Dynamics AX 2012 – Transfer Journal
The inventory transfer journal is used to transfer items from one warehouse to another within the company, without associating any extra cost. This journal is the only one out of the three mentioned above, where you need to mention both the FROM and TO inventory dimensions, such as From site and warehouse and To site and warehouse. This journal is used to:
- Transfer inventory between stocking locations
- Transfer between one variant to another variant
- Transfer items from one batch to another batch
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