Month-end checklist for supply chain in D365

Work through it in the last days of the month, before the inventory close. Each step names who usually owns it, because a checklist that belongs to everyone is done by no one.

1. Received, not invoiced (purchasing)

Purchase order lines with a posted product receipt and no posted vendor invoice. Purchase orders with status Received are the quick view. For each one: is the invoice on its way, or does the receipt need correcting? These lines are the accrual finance has to explain.

2. Pending vendor invoices (accounts payable)

Accounts payable › Invoices › Pending vendor invoices holds invoices that are entered but not posted, often stopped by a price or quantity match outside tolerance. Each one waits for a decision: approve the difference, correct the receipt, or go back to the vendor.

3. Delivered, not invoiced (sales)

Sales orders with status Delivered: the packing slip is posted, the invoice is not. Revenue that belongs in this month and is not there yet. Check whether invoicing is waiting on purpose (a project, a consignment, a price to confirm) or was simply forgotten.

4. Production orders still open (production)

Orders that are Reported as finished but not Ended keep their cost in work in progress; ending them calculates the real cost. Orders that are Started long after the work stopped usually have consumption or operations that were never reported. Review both lists before the close.

5. Stock in transit (warehouse and logistics)

Transfer orders that are shipped but not received sit in the in-transit warehouse. Some are really on a truck. Others arrived weeks ago and nobody posted the receipt, so the stock is missing at the destination and counted nowhere useful.

6. Unposted journals (inventory)

Movement, counting, transfer and BOM journals that were created and never posted. A counting journal from the last stock count that is still open is the classic one: the count happened, the correction did not.

7. Negative and blocked stock (inventory and quality)

Negative on-hand means something was issued before it was received, or not received at all. Fix it before the close: the close settles issues against receipts, and an issue without a receipt cannot be settled, so it stays at its estimated cost. Stock that is blocked, expired or held for quality is worth a look too: finance values it, and the business may not be able to use it.

8. The inventory close (cost accounting)

Run the inventory close for the period end in Cost management › Inventory accounting › Closing and adjustment, in batch and outside business hours. Inventory close is required at month end for every inventory model except moving average. Two things to know:

• before the close, you can check which items cannot be settled;
• after the close, nothing can be posted before the closing date unless you reverse the close. Make sure steps 1 to 7 are done, or deliberately left for next month.

Inventory recalculation adjusts costs during the month without closing anything; it is optional, the close is not.

9. After the close

Compare the inventory value report with the inventory accounts in the general ledger. Differences point to postings that went straight to the ledger, or to setup that posts inventory to accounts finance does not expect. Then the period can be closed in the ledger.

Menu names and behaviour can differ between D365 versions and your own setup. Check in your environment before you act.