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AX2012 R2- Moving Average (Inventory Costing Method)

AX2012 R2- Moving Average.
After a long wait we have the moving average introduced in AX2012. The Moving average is based on the average Principal, the cost of Inventory issues do not change even if the purchase cost does and the difference is capitalised and the amount that remains is expensed. 

When you use moving average, inventory settlements and inventory marking are not supported. Inventory close does not affect products that have moving average as the inventory model group, and it does not generate any settlements between the transactions
You can change your inventory costing method from a costing method that is based on average cost or standard cost to a method that is based on moving average.

Listed is the example from TechNet as to how the moving average works.
In this moving average example, the inventory value report is printed to support the current moving average calculation for a product. The Inventory value report can print the transactions in chronological order, together with the cost to support the moving average cost calculation of a product. The report displays the moving average cost for the product. 
In the Inventory value reports form, a Range field has been added. You can select the Transaction time option or the Posting date option to sort the report. The Posting date option is how the report is traditionally printed. The Transaction time option is the actual date that the transaction is reported and the moving average cost for the product is updated. 
You would print the Inventory value report by using the Transaction time sorting option if you want to see the moving average cost calculation over time. 
The following table displays the transactions for the product that the report is printed for when the Transaction time sorting option is used. 

Transaction time


Transaction type



Average unit cost


October 1

Beginning balance




October 8

September 28

Backdated receipt




October 3

October 3

Purchase receipt




October 5

October 5

Sales order




October 7

October 7

Purchase invoice




October 8

October 8

Moving average revaluation





October 31






You cannot reconcile the general ledger with inventory by using the Transaction time sorting option. The report must be printed by using the Posting date option.


About the Author

Rohan Wilson Lobo

With 13 years of experience in ERP, specialising in AX functionality across versions , Solution designing ,Project Management and delivery.

Rohan also has special interests in reading about new business processes and features along with understanding their viability. He also enjoys spreading this message across through his blogs.

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