When customers migrate from AX4.0 to AX2012, using weighted average as their costing method, and run inventory closing, they may notice differences in settlements between the two systems even though they use exactly the same data. This is due to the differences in the method used between the two systems to calculate the settlements.
AX4.0 calculates cost based on a ratio of the quantities of the invoiced purchase orders.
AX2012 calculates cost based on the total of the invoiced purchase orders.
Purchase order No1 Quantity 10 @ $10 Average cost = $10 ($100 / 10)
Purchase order No2 Quantity 20 @ $15 Average cost = $13.33 ($400 / 30)
Sales order issue Quantity 9 cost = $119.97 (9 * $13.33)
Closing using AX4.0 uses a ratio of the quantities on the purchase order to calculate settlements. In this eample the ratio is 1:2.
Sales order cost is calculated by 3 @ $10 (PO1) + 6 @ $15 (PO2) Total cost = $120.00
Resulting in a settlement of $0.03 (difference between cost at issue $119.97 and calculated cost at inventory close $120.00)
Closing using AX2012 calculates cost of the sales order based on total receipts. In this example, total receipts of 30, total cost $400.00. Therefore the cost of 9 = $119.97.
Result is no settlements (No difference between cost at issue $119.97 and calculated cost at inventory close $119.97)
Settlement differences between AX4.0 and AX2012 = $0.03
Note: The above is just a simple example and only calculated to 2 decimal places to explain the concept of the differences between the AX4.0 and AX2012. In reality systems calculate cost to many decimal places and even with many thousand transactions the differences in settlements between the two are relatively small.
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