average cost calulation

Question

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 excep

Kevin McMenamin · Answer

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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