Item Groups in Dynamics 365

Item groups are used to group similar items together that share a similar posting profile. Item group is a required field on all released products and must be assigned before the item can be used.

The information is used when various transactions are completed within Dynamics 365 for Finance and Operations.  When a given transaction is posted or processed, the item group assigned to the released product will be used to determine what ledger accounts the transaction posts to

Navigation : Inventory Management –>  Inventory –> Item Groups

 

Sales Order
Account Type	Main Account Type
Cost of units, delivered	Asset
Cost of goods sold, delivered	Asset
Cost of units, invoiced	Asset
Cost of goods sold, invoiced	Expense
Revenue	Revenue
Discount	Expense
Commission	Expense
Commission offset	Liability
Deferred revenue on delivery	Revenue
Deferred revenue offset on delivery	Asset
Deferred sales tax on delivery	Liability
Purchase Order
Cost of purchased materials received	Asset
Purchase expenditure, un-invoiced	Liability
Cost of purchased materials invoiced	Asset
Purchase expenditure for product	Expense
Discount	Revenue
Fixed receipt price profit	Expense
Fixed receipt price loss	Expense
Fixed receipt price offset	Asset
Purchase, accrual	Liability
Purchase price variance	Expense
Prepayment	Asset
Purchase expenditure for expense	Expense
Inventory
Fixed receipt price profit	Expense
Fixed receipt price loss	Expense
Inventory issue	Asset
Inventory expenditure, loss	Expense
Inventory receipt	Asset
Inventory expenditure, profit	Expense
Inventory cost revaluation	Expense
Inter-unit payable	Liability
Inter-unit receivable	Asset
Cost change variance	Expense
Rounding variance	Expense
Issue	Asset
Receipt	Asset
Unrealized gain	Asset
Unrealized loss	Expense
Goods in transit	Asset
Scrap	Profit and loss
Interim Transit	Asset
Price difference for moving average	Expense
Cost revaluation for moving average	Expense
Catch weight loss account	Expense
Catch weight profit account	Asset
Rounding – Loss	Expense
Rounding – Profit	Asset

 

Sales Order Accounting for Packing Slip, Customer Invoices, Commission & Discounts

Dynamics AX Standard Accounting entries for a sale order. The ledger accounts listed on the Sales order tab pertain only to the item group selected on the Overview Tab. Use Packing slip accounts used only if Microsoft Dynamics AX is set to post to the ledger when goods are delivered to a customer.

Sales Order Accounting for Packing Slip:

Voucher No.	Posting Type	Dr.	Cr.
Voucher # 1	Cost of Goods Sold , Delivered	Dr.
	Cost of Units , Delivered		Cr.

Sales Order Accounting for Customer Invoices:

Voucher No.	Posting Type	Dr.	Cr.
Voucher # 2	Cost of units, delivered	Dr.
	Cost of units, invoiced		Cr.
Voucher # 3	Cost of goods sold, invoiced	Dr.
	Cost of goods sold, delivered		Cr.
Voucher # 4	Customer balance	Dr.
	Sales order revenue		Cr.

 Sales Order Accounting for Sales Commission & Discounts:

Voucher No.	Posting Type	Dr.	Cr.
Voucher # 5	Commission	Dr.
	Commission Offset		Cr.
Voucher # 6	Discount	Dr.

 

Purchase Order Accounting for Product Receipts and Vendor Invoices

The purpose of the posting accounts is to allow Microsoft Dynamics AX to write an accounting entry for the whole value of the purchase, without any variances, and thus allow it to handle the variances in a separate voucher. This new posting account temporarily records the cost in control account and then moves the cost into ledger account.

Purchase Order Accounting for Product Receipts:

Voucher No.	Posting Type	Dr.	Cr.
Voucher # 1	Purchase Expenditure Un-invoiced	Dr.
	Purchase Accrual		Cr.
Voucher # 2	Cost of purchased materials received	Dr.
	Purchase Expenditure – Un-invoiced		Cr

Nature of Purchase Expenditure Un-invoiced:

This is a control Account and used as the offset main account for accrued liability amounts when a product receipt is recorded. This account can be used for both stocked & Non-Stocked products. But as a user, you might want to assign a different account for non-stocked item to see any product receipts that are not invoiced yet.

Purchase Order Accounting for Vendor Invoices:

Voucher No.	Posting Type	Dr.	Cr.
Voucher # 3	Purchase, accrual	Dr.
	Purchase expenditure, un-invoiced		Cr.
Voucher # 4	Purchase expenditure for product	Dr.
	Vendor balance		Cr.
Voucher # 5	Purchase expenditure, un-invoiced	Dr.
	Cost of purchased materials received		Cr.
Voucher # 6	Cost of purchased materials invoiced	Dr.
	Purchase expenditure for product		Cr.

Nature of Purchase Expenditure for Product

 This is a control account and is used as an offset main account for liability amounts when a vendor invoice is recorded. It is used for stocked Items.