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Item cost price calculation in Microsoft Dynamics AX 2012 R3

Disclaimer: The following method of Calculation is derived from the Microsoft Dynamics AX through Debugging the Codes.


The process starts at considering some values from the On hand Inventory Form


Path: Product Information Management >> Common >> Released Products >> Select an Item >> Manage Inventory Header Tab >> On Hand Inventory.



In On Hand Inventory Form, Switch to  On Hand Tab. Following are the Fields to be considered for the calculation of the Cost Price.

1. Physical Cost Amount*

2. Financial Cost Amount

3. Posted Quantity

4. Received Quantity*

5. Deducted Quantity*


Note: Following fields should be included in the calculation only if Include Physical Value check box is enabled in the Item Model Group.Those fields are already starred (Marked with the *) in the previous section of this post.

1. Physical Cost Amount

2. Received quantity

3. Deducted Quantity



Now lets Dive in to the calculation part,


The base formula for the cost price is

Cost Price = Value/Quantity


Scenario 1: Include Physical Value Check Box Enabled in Item Model Group

Use the following formula to calculate the Value and quantity, if the Include Physical Value checkbox is enabled in the item model group.


Value = Financial Cost Amount + Physical Cost Amount

Quantity = Posted Quantity + (Received Quantity – Deducted Quantity)


Consider,

Posted Quantity = 372

Received Quantity = 6

Deducted Quantity = 3

Physical cost amount = 180

Financial Cost Amount = 180000


Now,

Value = 180000 + 180 = 180180

Quantity = 372 + (6-3) = 375

Cost Price = 180180/375 = 480.48


Scenario 2: Include Physical Value Check Box Disabled in Item Model Group

Use the following formula to calculate the Value and quantity, if the Include Physical Value checkbox is Disabled in the item model group.


Value = Financial Cost Amount 

Quantity = Posted Quantity


Consider,

Posted Quantity = 372

Received Quantity = 6

Deducted Quantity = 3

Physical cost amount = 180

Financial Cost Amount = 180000


Now,

Value = 180000

Quantity = 372

Cost Price = 180000/372 = 483.87


Finally, We came to the end of this post. This post has an information about the Cost price calculation in two different scenarios. Hopefully, we will comeback with another useful post in near future. Happy Consulting !!

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