Inventory Basics

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While Dynamics AX is a complicated software package, the basics of how inventory works can be explained relatively simply. There is a single table, Inventory Transactions (InventTrans), that contains all of the inventory transactions that occur in the system regardless of which module you are using.

For each inventory transaction, a single sided entry is created on the table. This has a couple of key pieces of information.

  • What - The Item Id

  • Where - Inventory dimensions: Site, warehouse, batch, etc.

  • How many - The quantity either positive or negative.

It is important to understand that this is how AX keeps tracks of all inventory, whether it be sales, production, purchasing, etc.

These inventory transactions will be in one of three distinct stages (There are other but these are the most import to get a basic understanding)

  • Creation - Nothing has yet happened but the transactions exist in the system such as a sales order line or purchase order line.

  • Physical Update - The inventory is now on-hand and can be used, moved, or sold. A financial posting can occur but can but later updated.

  • Financial Update - The inventory transaction and corresponding document are closed such as applying an invoice to a purchase order or ending a production order.

Let’s look at these status and how they are identified in Dynamics. Inventory receipts are increased in inventory. They are commonly performed using:

  • Production orders - Report as Finished Journal

  • Purchase Orders - Packing Slip Journal

  • Return Orders - Packing Slip Journal

Invnetory Receipts.png

In the table above, you can see the receipt status as it is designated in AX. Below are several order types and what postings occur to take each order to its different status. It is important to note that the physical and financial step occur at the same time for inventory journals. Below is the same table but for inventory issues.

Inventory Issues.png

Along with each inventory status, it is important to understand several key dates on each inventory transaction as well.

  • Expected date – When the system expects the transaction to occur

  • Physical date – When the physical update occurred

  • Financial date – When the financial update occurred

Know the above information makes the inventory transaction form in Dynamics AX very valuable.