Microsoft Dynamics 365 Enterprise Edition - Financial Management - Third Edition

Physical update

The physical update represents the inventory transaction, whether it is a product receipt for a purchase order or a packing slip for a sales order. The reception price inherits from the item purchase price in the purchase order, and identifies the item cost price in the warehouse. The cost of goods sold is retrieved from the inventory cost price and the physical issuance that occurred from the sales order. The following diagram shows the physical and financial updates: