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average cost calulation

By
Theresa
on 7/21/14, 4:26 AM 991 views

Hi, I cannot understand the system caluclation login in average cost.

1. I create a new product and the average cost is 0

2. create a PO and the price is 15, purchase qty is 1

3. after receipt, the average cost is 15

4. create another new PO, the price is 15 and qty is 10

5. after receipt. the average cost is 28.86

When I run "Purchase Analysis" report, the result is

# of lines: 2

Quantity: 11

Average Price: 15

Total Price: 165

Product Value: 317.46

I think all the thing normal except the average price in "Product" form and product value in "Product Analysis" report.

 

0
Kevin McMenamin
On 7/22/14, 3:35 AM

there is something wrong with your setup. After the secons receipt you should have 11 at an average price of 15. This works successfully up to V7 (I have not tested in V8). The only issue with average costs is on returns, but that is another story.

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Asked: 7/21/14, 4:26 AM
Seen: 991 times
Last updated: 3/16/15, 8:10 AM