I posted about PO accounting last time. Now it’s time to discuss something about service items with respect to AX 2012.
Service items, unlike normal item, doesn’t have inventory. Service items are intangible (which we cannot see in general) and hence we can’t see the on hand Qty of service items.
Now another important point to note here is that service items are not considered when inventory closing is performed. The reason is obvious, we don’t receive or issue service items so how can we perform closing.
Item Model Group for Service Item
AX 2012 has introduced a new concept called Stocked product. Now the biggest question is should the service item have stocked product checked? I will list out two aspects.. decision we can take upon analysis:
1. Stocked product unchecked: Since we don’t maintain stock of service items, why should the stocked product be checked. Hence the best practice is keep the stocked product unchecked.
Keeping item model group unchecked means it has got nothing to do with inventory posting. At the time of Purchase expenditure for expense account will be debited. At the time of sales, revenue account is directly hit.
2. Stocked product checked:
As stated, stocked product should be unchecked. But the question is what will be the difference if i keep it checked or not. Now, certain important points here to note:
i. When stocked product is checked, system maintains transactions of service items which it doesn’t in case the stocked product is unchecked. However, no on-hand is maintained.
ii. On PO invoice for stocked service items, purchase expenditure for product account is hit and not purchase expenditure for expense. This is obvious as we are treating them as stocked product.
iii. In case of AX for Retail, if you want to post transactions for the service item then that item must be stocked. Otherwise there will be an issue in statement posting.
[This (statement posting) was a bug and is resolved in CU 4 update of AX 2012]. For more detail see this link:
AX 2009 didn’t had any stocked product concept so there was only one option for service items. We generally booked expense for service items.
Well before i finish, another important point for stocked service items is that they can be included in master planning.
Hope you had good reading. Please feel free to post any comment/suggestions. Queries are most welcome.
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