About Costs

About Costs

Costs

AccountingSuite uses the following terms when reporting costs for an item:

Standard (or expected) cost - this is in the expected cost field on the item card. It is entered manually and is stored as entered. This number is not used in any calculations and is only used when an item is added to a PO and the system does not have any other calculated cost to use.

Average Historical Cost: This is the average cost of the item over the lifetime in the system. All transactions that contain a cost are considered when calculating this number. This number is not stored in the system and is calculated on-the-fly when needed.

Current Average Cost: This is the average cost the quantity of the item currently in inventory. This is used in the calculations for the Inventory Valuation Report.

Item Last Cost: This is the last cost for the item as recorded in the system. 

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