What should you do?

Trey Research is now live on Dynamics 365 Supply Chain Management.

You need to apply the new cost model for the apparel items.

What should you do?
A . Run Inventory close.
B. Close all production orders.
C. Configure Backflush costing.
D. Run a BOM calculation.

View Answer

Answer: A

Explanation:

Apparel items will not be upgraded to the new costing method until after the go-live date due to resourcing and implementation limitations from the apparel team.

The inventory close process settles issue transactions to receipt transactions, based on the inventory valuation method that is selected in the item’s item model group. As part of the settlement process, you can specify that the general ledger should be updated, so that it reflects the adjustments that have been made. However, until inventory close or recalculation has been run, issue transactions are posted at the calculated running average cost price.

After inventory close, you can no longer post in periods that are before the inventory closing date that you set, unless you reverse a completed inventory close process. For example, if inventory close is run for the period that ends on January 31, you can’t post transactions that have a date that is earlier than January 31.

Reference:

https://docs.microsoft.com/en-us/dynamics365/supply-chain/cost-management/backflush-costing

https://docs.microsoft.com/en-us/dynamics365/supply-chain/cost-management/bom-calculations