Inventory Closing in AX2009

Steps that are performed by the Inventory Close routine
When you run the Close routine, Microsoft Dynamics AX performs the following steps:
1. Check whether any Recalculations were run after the date that you choose for your Close. Microsoft Dynamics AX will cancel any of those later Recalculations before the Close can start.
2. Put all the items that are to be processed into a queue. These items are stored in the InventCostList table.
Note While a Close or Recalculation is processing, you can click Calculation/Calculation List from the Close & adjustment form to view the data in the InventCostList table. This shows which items are still to be processed by the Close or Recalculation process.
3. Process each item from that queue sequentially. Microsoft Dynamics AX performs the following for each item:
a. Settle individual receipts and issues against one another for the item according to the Inventory Model Group such as FIFO, Weighted Average. • Make any required cost adjustments to the issue that was settled based on the cost of the receipt(s) against which the issue was settled.
• Update the inventory transactions to show the settlement and cost adjustment data.
• Write the settlement data into the Inventory Settlement table. The data will include records that show explicitly which Receipt(s) were settled to each Issue in addition to any cost adjustment that is made to the Issue that is settled.
b. As soon as all possible transactions are processed for that item, Microsoft Dynamics AX looks for any transactions that are fully settled, and then update those transactions to "Closed." For more information, see the "What fields show that an inventory transaction is closed" section.

4. As soon as all the items are processed, the settlement records that were created are read and sorted by General Ledger Account. Then, Microsoft Dynamics AX summarizes all the cost adjustments that were made, and a General Ledger Journal is created and posted.
5. If you select the Run recalculation after closing check box in the Close dialog box, a Recalculation will be run for all items up to today's date.


Steps that are performed by the Inventory Recalculation routine
The Inventory Recalculation routine does a similar job to the Inventory Close routine. However, there are a few differences. When you run the Recalculation routine, Microsoft Dynamics AX performs the following steps:1. Check whether any Recalculations were run after the date that you choose to run your Recalculation up to. Microsoft Dynamics AX will cancel any of those later Recalculations found before your Recalculation routine can start.
Notes
• In the Select dialog box, you can select item(s) for which you want to run the Recalculation, unlike the Close routine that always processes all items.
• While a Recalculation or Close is processing, you can click Calculation/Calculation List from the Close & adjustment form to view the data in the InventCostList table. This shows which items are still to be processed by that Close or Recalculation.
2. Put all the items that are to be processed into a queue, and then store the queue in the InventCostList table.
3. Process each item from that queue sequentially. Microsoft Dynamics AX performs the following for each item: • Make a "virtual" settlement between individual receipts and issues for the item according to the Inventory Model Group such as FIFO, Weighted Average. This is a "virtual" settlement because it is occurs in the Recalculation’s calculations. However, the detailed settlement data that shows the explicit matching of each issue to the various receipts is not stored in the InventSettlement table. The only data that is stored is the cost adjustment that is made to the issue.• Make any required cost adjustments to the issue that was settled based on the cost of the receipt(s) against which the issue was settled.
• Write a single settlement record for any cost adjustment that is made for that Issue into the Inventory Settlement table.

4. As soon as all the items are processed, the cost adjustment settlement records that were created are read, sorted by General Ledger Account, and summarized and posted in a General Ledger Journal.

What fields show that an inventory transaction is closed
To show that an inventory transaction is "closed", Microsoft Dynamics AX performs the following:1. When the Inventory Close routine has fully settled the Quantity and Financial Cost of a specific inventory transaction, Microsoft Dynamics AX updates the individual inventory transaction to show that the transaction is "closed."
2. For a transaction to be closed, it must meet the following criteria:• The "Quantity" must match the "Quantity Settled."
• The sum of "Cost Amount Posted" plus "Cost Amount Adjustment" must match the "Cost Amount Settled."
3. When those conditions are met, then the Close program will do the following:• Set the field "Value Open" from "Yes" to "No."
• Store the date of the close in the field "Date Closed."
This means that the individual inventory transaction is "closed."