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author's profile photo Former Member
Former Member

Wrong cost allocated for the Moving Average item

Dear Experts,

Please see this inventory audit report.. Wrong cost allocated for the Moving Average item

[screenshot here|http://www.flickr.com/photos/45736280@N07/4347146537/sizes/o/]

Please help advice why.

Warmest Regards,

Chinho

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2 Answers

  • Best Answer
    Posted on Feb 11, 2010 at 08:58 AM

    No, the out cost not based on the last in cost (with moving average valuation) but the system uses the actual average cost which is based on the cumulative value and the cumulative quantity.

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    • Former Member

      Oh yes, István is totally correct. I realized I had gotten my definition of Moving Average calculation wrong.

      The actual moving average cost price is actually calculated in the background after each purchase. The cost price shown on the screen for each purchase is simply the cost price in the purchase document.

      At the point of each purchase, the Moving Average price is updated as:

      Actual moving average price = (Last total cumulative value + current purchase trans value) / (Last Cumulative Qty + current purchase qty)

      Hope it helps and Thanks guys for the advice!

      Regards,

      Chinho

  • author's profile photo Former Member
    Former Member
    Posted on Feb 11, 2010 at 04:19 AM

    Hi!

    Are you sure, this is set @ Moving Average ?

    In Audit Report (Screen Shot) could you please show the Cummulative Value and Valuation Method too. For getting Valuation Method in Audit Report use Form settings and enable the same.

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