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Supply chain | Supply Chain Management, Commerce
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Weighted average on-hand quantity cost adjustment

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Posted on by 20
Dear Experts
I am using weighted average costing method for inventory items, as request we need to adjust on-hand quantity cost price increasing or decreasing the cost, let us say a type of cost revolution the item cost, the procedure could be on warehouse level, or site level, the differences could be recorded in vendor account or on GL account.
this procedure needed to be in any day of the moth.
I tried to find something similar in the system the only way that on the level of the transaction i found.
any help dears in this regards.
Thanks all in advance.
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  • AS-27070328-0 Profile Picture
    20 on at
    Weighted average on-hand quantity cost adjustment
    Thank you for your reply.
    We are not manfacturing company to use standard cost, in addition to that we are restricted to use one of two costing method, weighted average, or LIFO, and the recommended is to use weighted average costing method.
    the main purpose to adjust item weighted average to reduce the cost of the item without adjusting the quantities since also we are using serial number for the items.
    any idea about it.
    Thank in advance
  • André Arnaud de Calavon Profile Picture
    297,377 Super User 2025 Season 2 on at
    Weighted average on-hand quantity cost adjustment
    Hi,
     
    In case you need to adjust the cost price when required, I doubt if you are using the correct costing method. Being able to adjust the price to meet market value of e.g. raw materials sound like the standard costing will be the better option.
     
    The average price will be adjusted based on new purchases. There are options to influence the cost, but I wonder if an accountant would agree by using this as standard feature rather than exception.

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