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[Alexis Barrios]

Hi everyone, we are using D365 FO

We have two different inventory Items, I would like to valuate one of them with Standard Cost and the other one FIFO or average.  The system allows to set  inventory valuation method different by Item??

Thanks for your reply

Regards,

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Alexis Barrios
Pompano Beach FL
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[André Arnaud de Calavon]

Hi Alexis,

This is possible. You can setup multiple inventory model groups; each with an own costing method. Per item, you will decide which model group to use. Note that you have to use inventory recalculation and closing processes for FIFO and average to get the correct cost assigned periodically. This is not applicable to Standard Cost.

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kind regards,

André Arnaud de Calavon
Solution Architect, Microsoft MVP – Microsoft Dynamics Business Solutions
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[MICHAEL MILLS]

Andre is right, and in addition you must be careful if items are going to be used in BOM or formulas  There are rules regarding how different cost methods can be combined.

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Michael Mills
AX D365 Enterprise Consultant Operations
Blue Horseshoe Solutions
Carmel, IN
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[Dave Phillips]

Hi Alexis – 

Great advice above.

Another suggestion, pay attention to the Storage Dimension Group as well. The Financial Inventory by Warehouse checkbox. Several prior AXUG threads on this issue and the setting is very difficult or impossible to alter once transactions are made. Not directly related to the Inventory Model choice (Costing Type FIFO, Standard Cost, etc.) but just as important.

I would recommend ticked (capture Financial Inventory at the Warehouse level) unless the business understands the ramifications of not capturing Financial Inventory by Warehouse.

Thanks….Dave

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Dave Phillips
Sr Support Escalation Engineer
Microsoft
Fargo ND
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[geoff mcmaster]

Hi Alexis

The costing method (FIFO, WA, Standard Cost etc) is set on the Item Model Group, not directly on the item. So, simplisticly, if you wanted to use Standard Cost for item A and FIFO for item B then:
– create two Item Model Groups – one ‘Std Cost’ using Std Cost (field Inventory model on the Model Group), and another ‘FIFO’ using FIFO
– then for items you want to use Standard Cost, set those up using Item Model Group ‘Std Cost’ 
– and for items to use FIFO, set those up using Item Model Group ‘FIFO’

If this isn’t what you were really asking, feel free to clarify 🙂

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geoff mcmaster
Premier Field Engineer
Microsoft
Brisbane, Australia
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