Thanks, this explains it very well.
Sent from my iPhone
Sent from my iPhone
On Jun 16, 2010, at 10:30 PM, "CharlieSmith" <CSmith@...> wrote:
Simply put Average costing takes the cost of the current inventory and
the cost of the new inventory receipt and does a weighted average.
((Prev. Quantity x Prev.Unit Cost) + (Quantity Received x Receipt Unit
Cost)) / New Quantity On Hand
Example: You have 100 units of part ABC in stock, at an average cost of
$2.00. You receive 50 units at a cost of $3.50. The new average unit
cost stored in the part master file is $2.50 ((100 x 2.00) + (50 x
3.50))/150.
Charlie Smith
Smith Business Services / 2W Technologies LLC
www.vistaconsultant.com <http://www.vistaconsultant.com/> /
www.2WTech.com
From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of bturner101@...
Sent: Wednesday, June 16, 2010 4:55 PM
To: vantage@yahoogroups.com
Subject: [Vantage] Quick but Newbie Cost Method Question
I just wanted to verify if my average costing method logic for Vantage
8.03.409 is correct.
Does Vantage take a weighted average of ALL part receipts, job and/or
PO, to determine a part cost?
I informed my boss this is what average costing in Vantage does and he
couldn't believe that the system uses ALL receipts to average a part
cost.
Any verification or corrections is greatly appreciated.
[Non-text portions of this message have been removed]
[Non-text portions of this message have been removed]