Confusion in the calculation of Costing in NAV3.70IN

Hi All,

I had a very big question mark with me. That is how the average cost is calculated in NAV3.70IN, then I referred to the ‘NA370W1Inventory Costing 31-07-03.pdf’ manual. In that It has been given that

Average cost is calculated based as Cost Amount(Actuals)/Invoiced quantity. Whereas When I refered to the functionality in the system its calculating based on Cost Amount(Actuals + Expected)/ILE Qty. Its really Confusing. Can anyone clarify me which one is the correct method?