In PakERP Average Cost of the Item is calculated by the system automatically when any transaction is affecting the Inventory Valuation.
Following are the transactions that affect Average Cost.
- Stock Purchased at Cost other than the Current Unit Cost.
- Stock Adjustment (Both In and Out) if recorded at the Unit Cost other than the Current Unit Cost.
- Voiding Customer Invoice (Delivery Note): This is critical. Please note that there is no affect on average cost when Invoice is CREATED. But if any invoice is voided at later date and by that time the Unit Average Cost is changed to any other cost that is not same as the cost of the inventory item when the sale was recorded then it will affect the Average Cost. In order to understand this please follow the following transactions.
- Item A was purchased 100 @ 10 on 01-Jan-2019.
- Item A was sold 20 @ 50 (Unit Cost @ 10) on 2nd Jan, 2019.
- Item A was Purchased 50 @ 15 on 3rd Jan, 2019. (Unit Cost calculated at 12.5).
- Now if Transaction # 2 is voided then Unit Cost will be Re Calculated as 11.666/-
- Voiding any Supplier Invoice (Purchase Order Delivery) or Supplier Credit Note (Stock Return to Supplier).
- Direct Cost Update.