When I get an invoice I input the cost of a particular item, and I have SO Manager set up under Configuration Cost Update Method (Weighted Average), isn't this suppose to give me the average of an item if I purchased it once at $2 then next time at $2.50 for an average of $2.25? Doesn't seem to be working???
Getting the Average on Items
Feb 15, 2006
1 Replies
it depends on the quantity you still have at the old price and the quantity you receive at the new price...
if you have 1 on hand that you bought at $2, and you receive 1 at 2.50, then yes, the weighted avg. is going to be $2.25.
if you have 0 on hand and receive 10 at $2.50, then the weighted avg. would be $2.50 because that's what you paid for your entire current inventory.
if you had 5 on hand at $2.00 and receive 10 at $2.50, the weighted avg. would be: (5*2.00 + 10*2.50)/(5 + 10) = $2.33
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