How is Average Cost Calculated

Yahoo Archive
1
Reread your question. A better explanation is that the average cost
fields in PartCost represent the "Prev.Unit Cost" in your equation.
The "Prev. Quantity" is the PartWhse.OnHandQty . You do need to sum
up the quantities if you have multiple warehouses.

--- In vantage@yahoogroups.com, "Joe Rojas" <jrojas@...> wrote:
>
> Hello All,
>
>
>
> Does anyone know the technical explanation of how Average Cost is
> calculated?
>
> Meaning, according to the help file, Average cost is calculated as:
> (Prev. Quantity x Prev.Unit Cost) + (Quantity Received x Receipt
Unit
> Cost) / New Quantity On Hand
>
> I would assume that in order to speed up the calculation, "Prev.
> Quantity" and "Prev.Unit Cost" are stored somewhere as opposed to
being
> summed up for each transaction.
>
> If so, does anyone know where these values are located?
>
>
>
> We are moving from a cost roll where the "Consider as assembly" is
check
> to where it is not checked and we want to see if there is some way
to
> recalculate the Average Cost.
>
>
>
> Joe Rojas
>
> Information Technology Manager
>
> Symmetry Medical TNCO
>
> 15 Colebrook Blvd
>
> Whitman MA 02382
>
> 781-447-6661 x7506
>
> jrojas@...
>
>
>
> [Non-text portions of this message have been removed]
>
1 Like
2
Hello All,



Does anyone know the technical explanation of how Average Cost is
calculated?

Meaning, according to the help file, Average cost is calculated as:
(Prev. Quantity x Prev.Unit Cost) + (Quantity Received x Receipt Unit
Cost) / New Quantity On Hand

I would assume that in order to speed up the calculation, "Prev.
Quantity" and "Prev.Unit Cost" are stored somewhere as opposed to being
summed up for each transaction.

If so, does anyone know where these values are located?



We are moving from a cost roll where the "Consider as assembly" is check
to where it is not checked and we want to see if there is some way to
recalculate the Average Cost.



Joe Rojas

Information Technology Manager

Symmetry Medical TNCO

15 Colebrook Blvd

Whitman MA 02382

781-447-6661 x7506

jrojas@...



[Non-text portions of this message have been removed]
1 Like
3
Hmm! interesting question but not sure if this the way you want to pursue to recalc avg cost on the new assys. I find that we typically have to do a cost adjustment when our Assys are recosted. The Avg cost mechanism ends up assigning all the initial costs to the first material/assy issue or receipt to inventory etc. To address your question on tables:
I am not sure that the previous qty is stored per se. However I've noticed that the "Previous cost" is stored as LastMaterialCost and other Lastcost in the PartCost table (as in the last cost this item was received on a PO) and QTY on hand in PartBIN (probably stored in a temp field as field before update) right before the receipt of qty on the new PO receipt. Several temp tables and fields are used. You could view the data dictionary viewer with the intermediate tables to take a look at it.
Hope this is a start.
RSN

----- Original Message ----
From: Joe Rojas <jrojas@...>
To: vantage@yahoogroups.com
Sent: Tuesday, June 26, 2007 8:35:58 AM
Subject: [Vantage] How is Average Cost Calculated

Hello All,

Does anyone know the technical explanation of how Average Cost is
calculated?

Meaning, according to the help file, Average cost is calculated as:
(Prev. Quantity x Prev.Unit Cost) + (Quantity Received x Receipt Unit
Cost) / New Quantity On Hand

I would assume that in order to speed up the calculation, "Prev.
Quantity" and "Prev.Unit Cost" are stored somewhere as opposed to being
summed up for each transaction.

If so, does anyone know where these values are located?

We are moving from a cost roll where the "Consider as assembly" is check
to where it is not checked and we want to see if there is some way to
recalculate the Average Cost.

Joe Rojas

Information Technology Manager

Symmetry Medical TNCO

15 Colebrook Blvd

Whitman MA 02382

781-447-6661 x7506

jrojas@tnco- inc.com

[Non-text portions of this message have been removed]






____________________________________________________________________________________
Get the Yahoo! toolbar and be alerted to new email wherever you're surfing.
http://new.toolbar.yahoo.com/toolbar/features/mail/index.php

[Non-text portions of this message have been removed]
4
In version 8.x, the PartCost table should be what you want. The
average cost fields in that table represent the life time - to - date
of that part. (Of course, everytime the quantity hits zero, it
starts over again.)


--- In vantage@yahoogroups.com, "Joe Rojas" <jrojas@...> wrote:
>
> Hello All,
>
>
>
> Does anyone know the technical explanation of how Average Cost is
> calculated?
>
> Meaning, according to the help file, Average cost is calculated as:
> (Prev. Quantity x Prev.Unit Cost) + (Quantity Received x Receipt
Unit
> Cost) / New Quantity On Hand
>
> I would assume that in order to speed up the calculation, "Prev.
> Quantity" and "Prev.Unit Cost" are stored somewhere as opposed to
being
> summed up for each transaction.
>
> If so, does anyone know where these values are located?
>
>
>
> We are moving from a cost roll where the "Consider as assembly" is
check
> to where it is not checked and we want to see if there is some way
to
> recalculate the Average Cost.
>
>
>
> Joe Rojas
>
> Information Technology Manager
>
> Symmetry Medical TNCO
>
> 15 Colebrook Blvd
>
> Whitman MA 02382
>
> 781-447-6661 x7506
>
> jrojas@...
>
>
>
> [Non-text portions of this message have been removed]
>