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[Vy Ngo]

Hello All,
We just updated our D365 F&O to PU 34 (10.0.10) last weekend. Today, we try to change the Period status from Open to Onhold for month closing and we get this error below. We have never faced with this issue before since we are using standard cost method. I’m not sure why D365 asks for inventory closing.
Does any one get the same issue? How can we by pass the inventory closing process to close the period without any error ?

Thanks in advance.

–error message —
You are about to change the status of ledger period Period 3 to On hold. No execution of Inventory close with a date 3/31/2020 matching period end has been registered.
Please execute an inventory close as of 3/31/2020 matching the period end before changing the status. The valuation of inventories, cost of goods sold and variances may not be correct in Subledger or general ledger until this has been executed. Reported from legal entity XXX.

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Vy Ngo

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[Ian Gorman]

Vy,

Do you have access to the Financial period close workspace?

Add this to the end of your URL: &mi=LedgerPeriodCloseProjectWorkspace

Do you have any tasks here that pertain to inventory close?

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Ian Gorman, PMP, MCSE
Senior Consultant
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[Chantal Golding]

Hi Vy,

We are at the same version as you (V10.0.10) in our Test environment and we do not have the same issue but we have no tasks that pertain to Inventory as per Ian’s suggestions.

Thanks

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Chantal Golding
PSP Investments
Montreal QC
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[Vy Ngo]

Hi Chantal, 
This validation happens when you have the inventory transaction in this period. Maybe your TEST environment doesn’t have inventory transaction in the period that you tested. I had several discussions with Microsoft team as I raised the ticket to them and they were able to reproduce the issue. However, they explained to me that it’s as-design so we will have to run the closing inventory even nothing will be posted to GL due to standard cost method. Below is the latest email from MS team that I just received this morning
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We have internally discussed and finally concluded this behavior is now as by-design.  The correct period end process should be as below:

1. Close Inventory for the period. This prevent postings that affect the Inventory (PO, SO etc.)
2. On-hand adjustments (NRV)
3. Set General ledger period to On-hold. This prevent all postings to occur in period
4. Prepare external/Internal reporting. User validate the data Reconciliation Inventory to GL ect.
5. In case adjustments needs to be done in GL the ledger period is changed back to Open
6. Report results external/Internal

 

• The previous steps are suggested to avoid new variances to occur as it could happen that Standard cost is not 100% used. Plus, even for Standard cost, inventory close has always been “‘required/suggested”. The inventory closing process inserts a period balance into a table which is used in Reporting and Revaluation.
• There could be performance concerns if you are not running inventory closing now and then try to do it some day later after running business for quite a while.

 

Please let me know if this assessment is correct or if there is anything further I can help you with related to this support incident.

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Vy Ngo
Sr Manager ERP Systems
Gigamon Inc.
Santa Clara CA
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[Vy Ngo]

Hi Ian.
No, we did not setup the financial period close process. We did close March period successfully before updating to PU 34. After updating to PU 34, accounting team opened the period and booked another adjustment and then they cannot update the period back to onhold.

I created the ticket with MS team and they explained to me that it’s now as by-design. That means you will have to perform the inventory closing process . It’s an extra step even there is nothing posted to GL as we are using standard cost. Below is the email from MS team
—————————————-

We have internally discussed and finally concluded this behavior is now as by-design.  The correct period end process should be as below:

1. Close Inventory for the period. This prevent postings that affect the Inventory (PO, SO etc.)
2. On-hand adjustments (NRV)
3. Set General ledger period to On-hold. This prevent all postings to occur in period
4. Prepare external/Internal reporting. User validate the data Reconciliation Inventory to GL ect.
5. In case adjustments needs to be done in GL the ledger period is changed back to Open
6. Report results external/Internal

 

• The previous steps are suggested to avoid new variances to occur as it could happen that Standard cost is not 100% used. Plus, even for Standard cost, inventory close has always been “‘required/suggested”. The inventory closing process inserts a period balance into a table which is used in Reporting and Revaluation.
• There could be performance concerns if you are not running inventory closing now and then try to do it some day later after running business for quite a while.

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Vy Ngo
Sr Manager ERP Systems
Gigamon Inc.
Santa Clara CA
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[Rahul Mohta]

I saw some quality update towards fiscal closing, might want to check in LCS for PU34

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Best Regards
Rahul Mohta
Partner – Real Dynamics
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