Item Model Groups - "Weighted avg." Vs "Weighted avg. date"


Can any one suggest which among the above costing method is recommended for a business which is involved in Fixed Price Projects?


Thomas Philipose


In simple terms Issue and receipts are averaged on daily basis in weighted average date .This has a unique advantage as all the issues get same average cost. To put in more direct way every issue on each day will get average wt value calculated on that day while doing the inventory closing or recalculation.

I do not think that project type (FP,T&M or internal) have any linkage to inventory valuation. Other inputs are welcome though.

Hope this helps.