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Dynamics 365 Community / Forums / Microsoft Dynamics RMS (Archived) / weight average cost
Microsoft Dynamics RMS (Archived)

weight average cost

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Posted on by Mian Sufian

How the weight average cost work on HQ and Store Operation. I am using the version 2.0 of both.

I have an idea of weight average cost method but I want to confirm few options for setup related to HQ and Store Operation. Do I need to weight average cost option mark as a check on both store operation manager and HQ manager configuration tab for Weight Average Cost Method or is it fine if I only mark this option check on HQ configuration tab.

Please do reply me in this regard

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    Weighted Average: Select this method if you want Store Operations to update the item cost based on an average cost of all units of that item. When you receive new items, Store Operations adds the total cost of the unit received to the total cost of the existing units. This total cost is then divided by the total number of units on hand. For example, assume you have in stock 20 hammers that cost $10.00 each. You then order 10 more hammers that cost $12.00 each. If the weighted average cost method is selected, Store Operations automatically changes the cost to $10.67 when the 10 hammers are received. Look at the following computation:

    Total cost = 20 hammers @ $10.00 each + 10 hammers @ $12.00 each = $320.00

    Weighted average cost = $320.00 / (20 hammers + 10 hammers) = $10.67

    Note: If you are using Headquarters to manage item costs, the costs in the store database will be periodically overwritten, regardless of this setting.

    So to insure that the Store costs are the same you should make sure the Store and Headquarters setup is the same of the Headquarters data will be different and take over during any updates.

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