In this chapter, we covered the business model of inventory costing based on the business domain, the required configuration, and setup of Microsoft Dynamics AX in the inventory management module, as well as the integration concepts with the general ledger to map business requirements. The difference between the physical and financial updates model of Microsoft Dynamics AX is the inventory transaction with marking functions, in addition to recalculations and closing processes. We also covered the inventory value report, its setup, and generation.

In the next chapter, we will cover financial dimensions and practice practical reporting in Microsoft Dynamics AX.