Calculated Cost Explained: Perpetual Weighted Average
Perpetual Weighted Average
- Calculated cost of an item is determined using a weighted average that gets re-evaluated when inventory is purchased and sold/depleted
- Cost is computed for remaining on hand using FIFO
- Buy 10 @ $10, then buy 5 @ $3 | Calculated Cost is $100 + $15 = $115 / 15 = $7.67
- Sell 5 @ $7.67, next sale will equal 5 @ $10, 5 @ $3 | 50 + 15 = $65 / 10 = $6.5
In Perpetual Weighted Average Global, transfers are always computed at default vendor cost because store-to-store transfers are viewed as inventory sold/depleted/purchased because they still exist globally.
Related Articles
Calculated Cost Explained: Weighted Average Per Store & All Stores
Weighted Average Per Store & All Stores Calculated cost of an item is defined as the average price paid across all history of an item. Per Store – cost only factors in the price paid for the item in each store independently. Cost can be different in ...Reporting Explained: Inventory History Calculated Cost By Day
Reporting Explained: Inventory History Calculated Cost by Day Business Need: This report is helpful for users who want a report to show the calculated costs for items over a period. How it Works: An Inventory>History>Calculated Cost>By Day report ...Reporting Explained: Troubleshooting- Item On-Hand Calculated Cost
Business Need: This report is helpful for understanding an items current calculated cost. How it works: This report displays a single item’s current on hand valuation based on on-hand adjustments from receipts/invoices and physical inventories. When ...Can I change an Items Calculated Cost?
How do I set or change an item's average cost? The following is a list of rules that can be used to calculate an item's weighted average cost: An item's weighted average cost is reset every time the item reaches zero on hand.For the most part an ...Reporting Explained: ReOrder
Reporting Explained: Re-Order Business Need: This report will show items that are either at or below the re-order point assigned, and include the quantities needed to bring the items back up to Par. How it works: To best utilize this report users ...
Recent Articles
Yellow Dog/Agilysys Integration Overview
This document will provide an overview of the Yellow Dog Agilysys Spa & Golf integration Integration Approach This will be set up as a 2Way – Pulls Sales & Push Items Sales – Pulled from a .txt file 4x daily Codes – Pulled from a .txt file Items – ...Yellow Dog/Book4Time Integration Overview
This document will provide an overview of the Yellow Dog Book4Time Integration Integration Approach This is a 2Way Integration – we present item information and are provided sales information. NOTE: There is no sync application that can be controlled ...How To: Create Interface Codes for Book4Time
This document will review creating new interface codes for the Book4Time Integration in Yellow Dog Software Overview If additional Class, SubClass, Departments, or Brands need to be added to items in Yellow Dog users can create the new interface ...How To: Perform recommended post event tasks
This video will review recommended post event checklists and reportsHow To: Utilize Event Tenders
This video will review how to use utilize event tenders