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Hi,
I have setup few of my product to use Average Price as it's costing method but I'm wondering how it really works?
The tooltips mention it is recomputed at each incoming shipment but is it base on the item line from supplier's invoice, generated P.O or price from the product's page?
THanks & best regards, Max Chock.
The average price uses the following formula for calculating its price on each shipment received:
New Price = ((Old Price * Quantity valued at Old Price) + (Quantity received in last shipment * Price of the product in last shipment)) / (Quantity valued at old price + quantity received in last shipment)
This price is calculated every time a shipment and its corresponding invoice is confirmed
thank you!
Hi Gustavo, are average costing method recalculate the cost price when we do an refund goods to supplier? cause when i tried refunds goods the cost price not changed (this is can cause the price always high), or i miss something to settings. I use OpenERP 7 on Linux Ubuntu 12.04. Thanks before.
@Gustavo thanks for the formula, but if you say old price what does that means, is it latest old price?
New Price =
((Available Quantity(ie,in warehouse) * Product cost )+
( New Quantity(ie, quantity of product in new shipment) * New Price(ie, price of product in this shipment) )) / ( Available Quantity + New Quantity )
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