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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Does BC handle Perpetu...
Small and medium business | Business Central, N...
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Does BC handle Perpetual Weighted Average?

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Posted on by kjjson

We are looking to see if Business Central can run a perpetual weighted average costing method? The Design Details page states that the Average cost is cacluated with a periodic weighted average and I am trying to understand the difference between the two and if perpetual is supported.

Kevin

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  • Suggested answer
    Jun Wang Profile Picture
    Jun Wang 8,182 Super User 2025 Season 2 on at
    RE: Does BC handle Perpetual Weighted Average?

    for average costing, user has the following choices. the longest is accounting period. You need to know that average costing needs to have a valuation date. For example, if monthly, BC will calculate all the inbound and outbound, and existing inventory to figure out the average cost and do cost adjustment accordingly. If the period is too long, it will become, in effect, a FIFO, method because BC don't have a valuation date to do the math. 

    pastedimage1683934376910v1.png

    here is a link and some examples

    https://learn.microsoft.com/en-us/dynamics365/business-central/design-details-average-cost

  • Suggested answer
    Inge M. Bruvik Profile Picture
    Inge M. Bruvik 1,043 Moderator on at
    RE: Does BC handle Perpetual Weighted Average?

    So the closest you will get to perpetual weighted average in Business Central will be running daily average cost.

    Business Central can not calculate on smaller periods than daily.

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