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[Zvika Rimalt]

Hi All,

When we move inventory from one site/warehouse to another we want to factor in the cost of freight (and possibly other costs related to the transfer), and add them into inventory cost/value of the transferred inventory, as reflected in the destination warehouse.

How can that be done using Dynamics AX out of the box functionality? (AX 2012 R3 or later)
I am hoping to find functionality integrated with the transfer order, or maybe an elegant work around? 

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Zvika Rimalt
Functional Solution Architect
Vancouver BC Canada
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[Matt Alford]

I haven’t tried this myself, but you may want to consider using the Load planning workbench for shipping transfer orders (in R3 or later). You can get there from the Transfer order form or directly from the Warehouse Mgmt module menu. Once you add the transfer order to a Load, perhaps you can assign freight costs there. Might be worth a shot.

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Matt Alford
Sr. Manager of Information Technology
Delta Apparel
Duluth GA
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[Kaare Boraas]

Zvika.  I encountered this issue on my first ever AX project (2007).  I couldn’t believe there was no way to add freight charges when transferring items.  At that time, there was no ootb solution and I confirmed it with MS.  For that customer, we treated the transfers like an internal sale.  We made the destination warehouse a customer.  The problem with that is you don’t see it as in transit and you break the connection for the inventory item.  Once it has been sold, you can no longer see the full lifecycle in inventory.  For this particular customer, that was less of an issue than not being able to add the freight charges.  The other thing we considered was doing an inventory adjustment for the freight amount after the inventory was received at the new location.  If we went that route, we would have added some sort of customization to make that process more automated and efficient.  It sounds like there may be an ootb solution with the new transportation and distribution modules.  Good luck.  I would love to hear how you address this.

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Kaare Boraas
Solution Delivery Manager
PCL Constructors Inc.
Edmonton AB
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[Zvika Rimalt]

Thanks everyone for your thoughtful suggestions.

Me too, find it hard to believe this feature is not an integral part of the product, as it is such a BASIC and COMMON business scenario.

I also heard the rumor about being able to do that somehow with the advanced warehouse feature, but have not seen it with my own eyes, so cannot confirm it works.

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Zvika Rimalt
Functional Solution Architect
Vancouver BC Canada
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[Randy Halmstad, MCP-AX]

Hi Zvika,

I know they were looking to add some freight charges via the transportation module and I believe that would come in as miscellaneous charges on the transfer order, but I know of nothing released to date.

If you are standard costing the items, then you can set the different cost amounts in the cost version by site and use the main account for posing the change variance to offset the transportation cost. That is if your standard costing.

The other thing that we have used in the past, it’s a work around but it did work. But this does require a second item. Here is the example of what we did as a work around, to make it simple we will use item A at site 1, we transfer that to site 2 and want to add the additional fright cost. We need a new item setup so I will call that A-1. Then we need a BOM setup for item A-1 to include item A and Service-Item (fright). We transfer item A from site 1 to site 2, we do either a Production Order or inventory Report as Finished to consume A and the service item and post the total to inventory for item A-1. If we are not using site in the mix then we can do this between warehouses without the transfer order if you wish. In that case simply either post the production order or the RAF from the item and have the BOM setup to consume A from the from warehouse.

The other thing this client did as they always sell from inventory and they are not make to order, was to setup the Alternative item on the sale tab of the released product. The parameter for when to use the alternative item and set that to when none in inventory. As site 2 will never have item A it will sell A-1 but yet if they sell from site 1 it would use the original item.

I guess if you want the inventory always to be Item A, one could setup a BOM on item A and consume only item A-1 that would bring that cost price that includes the freight amount back to the original item for site 2.  This would include two steps of doing the RAF to A-1 catch the fright cost and posting, then consume that item A-1 back with another RAF to A.

A lot going on I know, but it is a work around and I believe will get the end result your looking for.

Randy

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Randy Halmstad, MCP-AX
Manager, Solution
Wipfli
Wausau WI
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[Andrew Lencsak]

Yes, your solution will depend heavily on if you are using Warehouse and Transportation Management or not as it will most likely differ depending on this setup.

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Andrew Lencsak
Senior Application Consultant
eBECS US
Atlanta GA
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[Randy Halmstad, MCP-AX]

Second thought.

You need to consider your inventory valuation method when considering that last paragraph about posting a RAF consuming A-1 back to A, as if you are average costing this would not get you the inventory value you are looking for.

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Randy Halmstad, MCP-AX
Manager, Solution
Wipfli
Wausau WI
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[Amy Cross]

Unfortunately, I don’t have a solution for this but I am very interested to see if anyone else has any helpful insight for you/us.

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Amy Cross
Aqua Star
Seattle WA
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[Karen Morrell]

Hi

We are looking for a solution to something similar to this also.  We use Standard Cost and carry different standard cost elements in different warehouses and need a solution to book a JE for the inventory revaluation including relief and the different cost elements when transferring between warehouses.  Present testing we have completed puts the total difference in purchase price variance instead of each cost element.

Any suggested solutions would be appreciated.

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Karen Morrell
Controller
Forney Industries, Inc.
Fort Collins CO
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[Hector Cazot]

Svika, I don’t know if you consider this as an elegant work around 🙂 but in a similar situation a customer decided to use a production order, adding service items in the bill of materials that represents the cost of freight and others. So the transfer order just move the inventory from one warehouse to another without changing costs, the production order applies the charges.
Regards,
Héctor

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Hector Cazot
Consultant Sr.
Industry Systems and Solutions
Guatemala
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