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Dear
I created two items one one Moving average and the other on weighted average and i did 2 receipts for the same exact amount ,
purchase Qty 1000 for 10
purchase Qty 1000 for 20
both items have exactly the same cost price , 15$
is there an actual difference between the cost calculation method of Moving average and weighted average?
or is it something that shows up after inventory closing?
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Hi Silvano,
The moving average and weighted average calculation methods are similar but not identical.
That is, the moving average is a current evaluation technique that calculates the average value as you post transactions. Any differences - when recording issuance transactions - are directly recorded on variance accounts.
The weighted average is using a temporary average cost Price - which is very similar to the moving average one. Yet, the major difference is that you need to run an inventory close to get the 'correct' moving average cost price calculated. The weighted average method is thus a retrospective valuation method and requires an inventory close that the moving average method does not require.
For additional information, please have a look at TechNet and the other AX help sites.
Best regards,
Ludwig
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