# AVERAGE COST PROBLEM IN NAV. 2.6

I just discovered that the average cost of my items are not correct.

What could like be the cause and do I correct it

Thanks

Hi,
could you be a little more specific. Maybe you have an example for us.
And please don’t forget that the average costs are calculated over all item ledger entries (if you want to calculate “your” average costs).
The easiest way is to give us an example (qty and cost price with a PO and/or manual postings into the item ledger entries).
Regards
Walter

Thanks,

Let me explain more.

At the end of year 2006 while going to the item ledger entries. I discovered that average cost of most items are wrongly calculated.

How do I correct them now

Hi

That is not telling us why it is wrong! Can you give us an example of the average cost, the ins and outs and why you feel it is wrong.

Ok

The total Amount of an item in year was 38,378,764 and total qty was 82,804. The expected average cost of that item should be 38378764 / 82804 = 463.488. but that item shows 456.758 as its average cost on its item card.

I think this explanation is a bit clearer

I am using nav 2.6

Ok

The total Amount of an item in year was 38,378,764 and total qty was 82,804. The expected average cost of that item should be 38378764 / 82804 = 463.488. but that item shows 456.758 as its average cost on its item card.

I think this explanation is a bit clearer

I am using nav 2.6

thanks

This is purchases and positive adjustments?

All transactions are fully invoiced?

Yes Steve,

All transaction are fully invoiced.

The example I gave includes all transaction in inventory…Postive and Negative adjusmt, Transfers, Purchase and issues.

Start with all the positive adjustments and then add the value of these up and the quantity, I am not sure how your value is related to the quantity if you include transfers etc.

I presume you have run the adjust cost item entries routine.