Difference between running average and weighted average in AX

Finance and Operations/AX User Forum
1

Hi Gurus

According to the sample in the white paper i cannot find any difference between “Running Average” and “Weighted Average” in AX, anyone who knows the difference in AX 2012 ?

many thanks

2

Hi,

‘Weighted average’ is the name of an Inventory Model that can be set in AX (which, if chosen, enables one of the actual costing methods that AX supports).

‘Running average’ is a term that is often used to describe how AX values current On Hand stock when using the actual costing methods. When using some of the actual costing methods (inc. Weighted Average), it is also the value that AX assigns to Issue transactions when they are posted (i.e. before Inventory close can assign an actual cost).