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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / weighted average cost ...
Microsoft Dynamics AX (Archived)

weighted average cost calculation using ax2009 database

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Posted on by SHS 50

hi guys, i need to know the equation used to calculate the weighted average cost used in the first month's issue transaction ..i am making an external report but it never help using the equation :

(q1*p1 +q2* p2) / (q1+q2)

it gives always a wrong weighted average (not the same the system issued first sold with )

is there anything i miss ! 

i use the physical date as parameter !

Any help ?

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  • Suggested answer
    Wei Yuan Profile Picture
    Wei Yuan 105 on at

    Total purchasing qty of the month                     tq = q1+q2 + qn

    weighted qty of each purchasing                      wq1 = q1 / tq;

                                                                                   wq2 = q2 / tq

    weighted value amount of each purchasing amt1 = wq1 * unit price1

                                                                                   amt2 = wq2 * unit price2

    weighted cost                                                       wc = amt1 + amt2 + amtn

  • Mohammed Atef Rasheed Profile Picture
    Mohammed Atef Rasheed 2,475 on at

    Your equation is OK, but if you want to take the weighted average based on date you have to select “Weighted average Date” not weighted average.

    Also you have to run Inventory re-calculation by the end of each period.

  • Wei Yuan Profile Picture
    Wei Yuan 105 on at

    True. Monthly (period ending) "closing and adjustment" and "recalculation" process must be run. weighted avg. date is to value the purchases daily rather than per purchasing transaction.

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