Difference between Inventory adjustment, Movement and Transfer Journal in Ax 2012

There are 3 types of commonly used journals available under Inventory Transactions in AX 2012 Inventory Journals. These journals are fairly similar in nature. But certain differences make them stand apart.

Movement Journal:

When you use the inventory movement journal, you can add cost to an item when you move the inventory.  You would have to allocate the additional cost to a particular general ledger account manually in this case (i.e. not as per the predefined posting profile). This use of journal is;

• To bring in opening balances
• To post additional cost to an offset account different (manually selection) other than the posting profile
• To intake (increase) or outtake (decrease) the inventory quantity
• To add cost to an item when you move the inventory.

Inventory adjustment Journal:

In previous version of dynamics Ax, this journal type was used to be specified as Profile/Loss journal. The use of journal is;

• To intake (increase) or outtake (decrease) the inventory quantity
• To add cost to an item when you move the inventory
• To post additional cost automatically to a particular general ledger account according to the Item group posting profile setup

Transfer Journal:

The inventory transfer journal is used to transfer items from one warehouse to another within the company without associating any cost implications to it. This journal is the only one out of the three, where you would have to mention both the FROM and TO inventory dimensions like site and warehouse. The use of journal is;

• To transfer between stocking locations
• To transfer between one variant to another variant
• To transfer from one batch to another batch

Creation and Posting of Inventory Adjustment Journal in Dynamics Ax 2012

The inventory adjustment journal (or Profit/Loss journal) is used to write-off or write-up inventory. It is an inventory adjustment journal for items lost, found or broken where item value and quantity must be  updated to keep inventory accurate. Refer the following navigation to create and post inventory adjustment journal;

1. Inventory and warehouse management —>journals—> Item transactions —>Inventory adjustment
2. Click ‘New’ on the inventory adjustment journal form
3. Once journal is created, click Lines
4. A new journal lines form is opened
5. Select following values in the journal lines form;
   • Item number,
   • Item dimensions if any (configuration, size, color),
   • Storage dimensions (site, warehouse, location and pallet id)
   • Tracking dimensions (Serial no., Batch no.)
   • Value in Quantity field

If you are going to add the inventory, you need to put positive value in the quantity field. If the value is positive, you can edit the value displayed in Cost amount field.

If you want to remove or outtake the inventory you need to put negative value in the Quantity field. Here you can’t edit the values displayed in Cost amount field.

If require adding some more items, create another lines and enter all related values in related fields.

Now journal is ready to validate & post.

Inventory Dimensions in Ax 2012

Inventory dimensions in Ax 2012 now consist of 3 classifications:

1. Product Dimension
2. Storage Dimension
3. Tracking Dimension

Product dimension: can be referred to a dimension group that mainly focuses on the physical attributes of the product; major constituents:

• Size
• Color
• Configuration

Since a product (item) is treated as a the lowest entity in the classification in Ax 2012, these can be used only with the Product master. To configure access Product information management –> Setup –> Dimension Groups –> Product Dimension Groups.

The Active check box determines if this dimension will be used for the dimension group. For purchase price & for Sales price determine if the system shall include these dimensions when searching prices.

Storage Dimension: can be referred to a dimension group that mainly focuses on the physical storage of the product; major constituents:

• Site
• Warehouse
• Location
• Pallet ID

To configure access; Product information management –> Setup –> Dimension groups –> Storage dimension groups

Active check box determines which dimension combination is applicable; Site is a mandatory storage dimension in Ax 2012.

Blank issue/receipt allowed fields determine if inventory transaction can be posted without a specific dimension value.

Physical Inventory determines the level at which the system maintains the stock i.e. at site level or warehouse or at location level

Financial Inventory determines the level at which the system maintains the cost of the product.

Tracking dimension: can be referred to a dimension group that mainly focuses on the identification of the product at the lowest level; major constituents:

• Batch number
• Serial number

To configure; Product information management –> Setup –> Dimension groups –> Tracking dimension groups

Batch number will be used when the goods are produced as part of lots, in such scenario where are the goods are being produced simultaneously in bulk, the batch number is alloted, along with the batch number are some other attributes such as manufacturing date, expiry date etc.

Serial number will be used when the goods are produced may or may not be as part of lots but every single unit of the item is uniquely identifiable. The serial number can provide additional information such as an item’s manufacturing date, warranty data etc.