Hello - So does anyone know the calculation used to compute the average cost? Thanxs
According to the Attain help file… “The program calculates the average cost on the basis of the Adjusted Cost field in the Value Entry table. The amount in this field is then divided by the amount in the Invoiced Quantity field.” Regards CS
Yes, but - if you perform the following: Purchase Receipt / Invoice 10Qty @ $10ea Sale Ship / Invoice 10Qty @ $10ea Your average cost is $10 - but since you sold off 10 - it is now $0.00 If you Purchase Receipt/Invoice another 10Qty @ $20, and run your Adjust Cost - your average cost is now $15.
Hi, Could you tell me the posting dates? Maybe PO1 Posting date=PO2 Posting date? Greetings from BP Soya
quote:
Originally posted by CHRISRI70
Yes, but - if you perform the following: Purchase Receipt / Invoice 10Qty @ $10ea Sale Ship / Invoice 10Qty @ $10ea Your average cost is $10 - but since you sold off 10 - it is now $0.00 If you Purchase Receipt/Invoice another 10Qty @ $20, and run your Adjust Cost - your average cost is now $15.
The average cost calculation is indeed correct. If you have 10QTY at $10 and 10QTY at $20, the average of those would be $15.00. Navision is using the moving average instead of the average of the quantity on hand.
The date of the posted Purchase Invoice is important for the average cost calculation Purchase Receipt / Invoice 10Qty @ $10ea Sale Ship / Invoice 10Qty @ $10ea Your average cost is $10 - but since you sold off 10 - it is now $0.00 If you Purchase Receipt/Invoice another 10Qty @ $20, and run your Adjust Cost - your average cost is now $15. If this second purchase has the same or earlier posting date than the first Invoice above then the average cost will be $15.00 after running the Adjust Cost-Item Entries. If the posting date of the invoice is a later date than the first purchase invoice the average cost will be $20. When using Average Cost make sure those posting the invoices keep a clsoe eye on the posting dates they are using. Hope this helps Cheers Peter
quote:
Originally posted by Craig
According to the Attain help file… “The program calculates the average cost on the basis of the Adjusted Cost field in the Value Entry table. The amount in this field is then divided by the amount in the Invoiced Quantity field.” Regards CS
The program calculates the average cost on the basis of the Cost Amount (Actual) field in the Value Entry table. The amount in this field is then divided by the amount in the Invoiced Quantity field. The value entry table captures the purchase price (the price paid to the vendor as well as other direct acquisition costs referred as item charges.these are recorded in the Cost Amount(actual) field. In case your Purchase Receipt / Invoice 10Qty @ $10 over which you load a Freight amount of 10$ your value in the Cost Amount(actual)would go up and the average cost becomes 11$. From the Average Cost field on the item card if you click on the assist button you would see all the comprising value entries. The calculation also depends on valuation date. regards