Resolved Inventory Costing Inaccuracies in Microsoft Dynamics AX 2012

Overview

Resolved inventory costing inaccuracies in Microsoft Dynamics AX 2012 for a leading Agricultural supplies manufacturer. The organization faced significant challenges due to historical data fixes made directly in SQL, which caused discrepancies in cost valuation. Additionally, costs were not being tracked at the warehouse level, delaying month-end close and preventing accurate item cost reporting.

Scope

• Analyzed inconsistencies in the inventory cost setup and historical data.
• Corrected cost calculations by restructuring storage dimension settings to include warehouse-level financial tracking.
• Implemented a controlled process to reset and restore on-hand quantities, ensuring accurate costing.

Key Activities

• Root Cause Analysis: Identified data integrity issues caused by direct SQL fixes and missing financial quantity tracking at the warehouse level.
• Solution Design: Designed a corrective approach to recalibrate inventory costing without disrupting ongoing operations.
• Execution: Cleared on-hand inventory quantities by setting balances to zero, updated the storage dimension group to enable financial quantity at warehouse level, and reintroduced accurate on-hand balances back into the system.
• Testing & Validation: Verified inventory valuation accuracy post-fix and validated smooth month-end closing cycles.
• Documentation: Prepared detailed steps and guidelines for maintaining costing accuracy going forward.
• Client Coordination: Worked closely with finance and supply chain teams to validate results.

Outcome

• Restored accurate inventory costing across all items, including warehouse-level tracking.
• Significantly reduced delays in month-end closing activities.
• Enabled clear visibility of true item costs for financial and operational reporting.
• Eliminated discrepancies caused by prior manual SQL data fixes.