How Average Costing is updated

This is the Average Cost after two (2) purchasing transactions are created.

Placing your cursor on the Average Cost field in this form will show the Average Cost up to its last decimal.

Average Cost field in Inventory form is also updated with this number.

Placing your cursor on the Average Cost field in this form will show the Average Cost up to its last decimal.

Create an invoice.  When you recap this invoice transaction, the average cost is used for the item’s cost.

After posting this invoice, double-clicking on Price field will show Cost (Average Cost) up to its last decimal.

Let’s say the Average Cost is manually changed in Inventory Items form – Pricing tab.

To manually change the Average Cost, click the Ellipse button on Average Cost field and this message will be shown.  Click Yes and change the Average Cost and then save it.

Average Cost in Inventory Warehouse Transaction History form will then be updated with the manually entered Average Cost.

Now, create an invoice.  When you recap this invoice transaction, the manually entered average cost is used for the item’s cost.

After posting this invoice, double-clicking on Price field will show Cost (Average Cost) up to its last decimal.

Let’s say you purchased again 5 qty for this item.

After the above Purchase transaction is received, Average Cost will be computed as follows.

Average Cost in Inventory Items –Pricing Tab will also be updated with the new Average Cost.

Let’s say you are to create again an Invoice.  When you recap this invoice transaction, the average cost is used for the item’s cost.

After posting this invoice, double-clicking on Price field will show Cost (Average Cost) up to its last decimal.