We are finding our costs are varying widely around our chain of 15 stores. I manually logged into each stores' operations manager last night and changed the Weighted Cost option to None. (What we really want is to use the HQ Cost, or the Item.Cost field from HQ.) One store received a PO from a vendor today and that store's cost now reflects the cost on the PO. (The item was from a secondary supplier, so the cost is higher than our normal cost for that item.) How do I stop that? What does the option "None" mean on the Inventory tab under Configuration? If I wanted "Last Cost," I would have selected THAT button!
hi Rick, When you select the "None" in the costing for an item, the cost won't change when you received the goods from vendor, mean it will remain always same just like standard cost or mfg suggested cost.
Last Cost mean that whenever you received the goods with the cost (whatever) it applies that to your item. For example, assume that you have in stock 20 lux that cost $10.00 each. You then order 10 more lux that cost $12.00 each. If the last cost method is selected, SO cost for lux to to $12.00 when the 10 lux are received.
AS describe Weighted Average, it means the average cost which is sum of total qty / total amount (now how to calcuate the total qty. Asssume you have
10 lux received lastly with amount of $10 so the total is $100. Now you place the PO next time with amount of $12 with same 10 qty. in this case the new cost for item will be:
Again in Weighted Avg it calcuated base on the balance stock, it might be possible that when you are performing the receiving for an item the qty won't be same so the cost would be less. Assume at the time of receiviing you have
5 balance lux and 10 more with $12 you recieved so weighted average cost would be:
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