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Posting of purchase order result in incorrect amount for Moving average items
We are running into the “price amplification” effect with Moving Average costing in Dynamics 365 F&O. This is a well-known limitation whenever:
- Negative financial inventory is allowed,
- On-hand quantity reaches zero (or below), and
- The system tries to post an issue transaction without a proper moving average base → resulting in inflated or distorted costs.
Microsoft’s reply ("by design") basically means they aren’t considering it a bug, but a structural limitation of moving average valuation.
We need some functionality to overcome this design limitation
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Posting of purchase order result in incorrect amount for Moving average items
We are running into the “price amplification” effect with Moving Average costing in Dynamics 365 F&O. This is a well-known limitation whenever: Negative financial inventory is allowed, On-hand quantity reaches zero (or below), and The system tries to post an issue transaction without a proper moving average base → resulting in inflated or distorted costs. Microsoft’s reply ("by design") basically means they aren’t considering it a bug, but a structural limitation of moving average valuation. But the system must do one of two things when scenario presents: - Stop you from proceeding - Calculate amount correctly.
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