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Hi All,
I would like to know how the Unit cost calculation works if the Costing method is 'Average'.
In my sceanrio, consider Item A is $2 on Jan, $2.5 on Feb, $3 on May based on the entries and the latest average unit cost is $3.
Now, we are posting a sales invoice on Feb and we expect the Unit cost to be $2.5 but it is picking up the latest Unit Cost $3 though the date is on Feb month.
Kindly advise if anything is missing in terms of the setup.
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[quote user="Saravanan"]
Does auto adjustments will be updated by system for Purchase credit memo as well.
[/quote]
Yes.
[quote user="Saravanan"]
If it so, how can we reverse the adjustment posted to the Purchase Type as it affecting the average cost.
[/quote]
You can manually adjust Unit Prices as described here (paragraph "To make general changes in the direct unit cost"): docs.microsoft.com/.../inventory-how-adjust-item-costs
Hi Hannes Holst,
Thanks for your reply.
Does auto adjustments will be updated by system for Purchase credit memo as well.
If it so, how can we reverse the adjustment posted to the Purchase Type as it affecting the average cost.
Thanks in advance.
Hi,
Using Average Unit Costs, the Unit Costs of the whole inventory will be udpated when new a new purchase is posted. That means, the costs of stock which arrived in January and February, will be updated when a new purchase is posted in May. You are able to see the adjustment postings in the Value Entries.
If you want to have specific prices for a given period, you have to use e.g. FIFO. FIFO lets you control individual Costs per Purchase. But, when posting a Sales Invoice, you have to make sure that the stock is taken from the February purchase. Normally, NAV would take the January purchase (in your scenario).
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