weighted average date vs weighted average

(0) Share

Report

Posted on by Community Member

Dear Experts,

Does any one can explain to me in a simple way, what is the difference between weighted average date and weighted average.

Thank you

Regards

rudy

*This post is locked for comments

I have the same question (0)

All responses (4)

Answers (0)

spot 2,515 on at

Like (0)

Report

Hi,

In Simple terms Issue and receipts are averaged on daily basis.(if there are only issues or receipts on a single day no effect of this method its as good as normal wt average). advantage being all the issues get same average cost. To put in more direct way every issue on each day will get averagw wt value calculated on that day(ofcourse while doing the invetory closing). Hope this help

Regards

Was this reply helpful? Yes No
Suggested answer

Community Member on at

Like (0)

Report

hi

when you calculate costing with what average you calculate all period when use systems and Goods disbursed

when u use wt average .date you calculate cost price from date to date the system calculate cost price if u adjustment quantity and price During this period

Let’s assume that the item cost as the following:

01/01/2015 = 20

10/01/2015 = 25

20/01/2015 = 30

And we will issue item in 25/01/2015 but with transaction date 05/01/2015 (late transaction)

If we are using the weighted average: the system will evaluate the transaction with the current active cost price (30) regardless of the transaction date

If we are using weighted average date: the system will ignore the current average and will use the active average in the transaction date so it will evaluate the transaction with (20)

Was this reply helpful? Yes No
Community Member on at

Like (0)

Report

what are the tables you use in the backend? if there is a scenario as to. how will we calcite the average inventory value on a given particular day starting from back in time starting from Day 1.

Thanks,

Abhy.

Was this reply helpful? Yes No
Suggested answer

guk1964 10,888 on at

Like (0)

Report

In simple, terms"

'Weighted average'. averages the whole month i.e. it also includes into the average those transactions. that are entered after the current one, and uses that same average for all transactions in the period.

"Date weighted average - only the month to date transactions up to the current transaction are used to calculate the average for the current transaction.

Was this reply helpful? Yes No