Average cost computation

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Average cost computation

average_cost

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Maurice Moretti

OE 16

I buy a product P from by supplier and get only invoiced for ordered qty

Product P with AVCO as costing method

I buy 10 P at 100€/piece, I receive 10 P, the cost of P is set to 100 €, which is fine

I buy 10 P at 200 €/piece,I receive 10 P, the cost of P is set to 150 €, which is fine

I buy 10 P at 175 € /piece, I receive 12 P, the cost of P is set to 159,38 €, which is not correct

When I process the lastest move the computation that is made is

10*100+10*200+12*175=5100 / 32 = 159,30 €

5100 € is correct as the stock valuation but the cost price should be 10*100+10*200+10*175=4750 / 32 = 148,44 €

Any comment is more than welcomed

Regards

Maurice

Maurice Moretti

Autor

Hello what you describe is what I would like to have but it does not work that way

Average price is computed only upon receipt based on the price of the Sale Order

Which means that if you get 32 units instead of 30 price will be computed based on the price of the sale order line and the received qty even if after you pay only for 30 units

Jaideep

You seem to agree 5100 as value of stock for 32 qty, which translates to 159.38 per unit.

If you ordered and paid for 30 units and received 2 for free then the 2nd calculation would apply 4750/32

10*100+10*200+10*175+2*0 = 4750/32 = 148.44

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