Average Costs

Average Costs

1. What is average costs?
  1. This is the average cost the quantity of the item currently in inventory. This is used in the calculations for the Inventory Valuation Report.
2. With weighted average costing, what document is used to calculate the cogs?
  1. Weighted average cost of an item can be found by navigating to Inventory → Items → "Double click the item" → Current unit cost. Current unit cost is weighted average of an item, and it is calculated from Item receipt documents if Item receipts have been used.
3. If the answer to the above is item receipt, what is used when that document is not available for the calculation?
  1. If item receipt hasn't been created for this transaction, the costs will be calculated from the Bill.

4. If a date gets changed on the document that was used in the costing calculation, does recalculation automatically happen?

  1. No, it doesn't happen automatically. For weighted average costing on an item, any change in a document has to be modified manually on the related documents. Currently, best way track an item's cost is via Report → Inventory Valuation Summary → Run Report. After a change has been made, reposting the transaction will cause a recalculation.
5. What happens if the Item Receipt or the Bill document gets deleted?
  1. Document deletion will fail if there are related item cost and bill documentation to a purchase order. If the document used for calculation is deleted, the transaction will not be included in the cost calculation.

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