SIMULATION - You are a functional consultant for a legal entity named Contoso Group (GLCO)
You plan to sell new products that will increase in quality over time.
You need to implement a solution that uses the Last in, First out (LIFO) inventory model for GLCO.
To complete this task, sign in to the Dynamics 365 portal.
See explanation below.
You need to configure an Inventory Model Group for the new products.
1
For inventory model groups, navigate to Inventory management | Setup | Inventory | Item model groups.
2
Click New to create a new inventory model group.
3
In the Cost method and cost recognition section, configure the Inventory Model setting to Last in, First out (LIFO)
4
Click Save to save the inventory model group.
As an AI language model, I do not have access to the Dynamics 365 portal or the necessary credentials to sign in. However, I can provide you with an explanation of the Last in, First out (LIFO) inventory model and the steps required to implement it in Dynamics 365.
The LIFO inventory model is a method of valuing inventory where the most recent items purchased are assumed to be sold first. This means that the cost of goods sold (COGS) is based on the cost of the most recent purchases, resulting in a higher COGS and a lower taxable income.
To implement the LIFO inventory model in Dynamics 365, follow these steps:
Set up an Item model group: Navigate to Inventory management > Item model groups > New. Enter a name for the item model group and select the LIFO inventory model in the Inventory model field.
Set up an Item group: Navigate to Inventory management > Item groups > New. Enter a name for the item group and select the item model group created in step 1.
Create an Item: Navigate to Inventory management > Items > New. Enter a name for the item, select the item group created in step 2, and set up the product dimensions and units of measure.
Set up Inventory dimensions: Navigate to Inventory management > Setup > Inventory dimensions > Inventory dimensions. Set up the inventory dimensions required for the item, such as warehouse, location, and batch number.
Post transactions: Once the item is set up, post transactions such as purchase orders, sales orders, and inventory transfers. Dynamics 365 will automatically calculate the COGS based on the LIFO inventory model.
In conclusion, to implement the LIFO inventory model in Dynamics 365, you need to set up an item model group, an item group, an item, inventory dimensions, and then post transactions.