Closing and adjustment
As part of the month-end or period-end closing activities, we need to ensure we process an inventory closing process. This process helps to reevaluate cost transactions and match inventory issue transactions with receipt transactions according to the inventory valuation method selected in the inventory model group of each item.
Usually, this process is run once per month, but it depends on each company’s requirements. For example, some companies do it after each cycle count. But it is essential to run an inventory closing process regularly because it helps to ensure the costs of products are up to date. For example, Dynamics 365 SCM keeps track of the cost of each product using the weighted average dated costing method. the closing process reevaluates the transactions to the selected method for all items. For example, suppose we decide to use the First in, first out (FIFO) costing method. In that case, all transactions will be automatically recorded...