Register    Login    Forum    Search    FAQ

Board index » General Usage » Inventory

It is currently Sat May 18, 2013 12:15 pm
All times are UTC - 7 hours [ DST ]
View unanswered posts | View active topics
 



Post new topic Reply to topic  Page 1 of 1
  [ 2 posts ] 

Inventory - cost_method=avarage

Author Message
PROpheT
 Post subject: Inventory - cost_method=avarage
 Post Posted: Thu Apr 07, 2011 7:17 am 
Offline

Joined: Mon Feb 14, 2011 2:02 am
Posts: 80
Location: Slovakia
Hi,
I need to know how this cost method works. There are two many inventory tables in DB and also too many links between these tables. I tried to figure out how this method works, but I dont know :)

Thanks.
Top 
 Profile  
 
dave
 Post subject: Re: Inventory - cost_method=avarage
 Post Posted: Thu Apr 07, 2011 5:03 pm 
Offline

Joined: Fri Oct 26, 2007 3:55 pm
Posts: 3498
Location: Colorado, US
Average cost is calculated based on the quantity in stock times the price per unit divided by the total number of units at the time of calculation.

For example,
Purchase 2 printers at $100 each.
Sell one, average cost is $100.
Purchase 2 more at $110 each.
Sell one, average cost is $106.66 each. (1 at 100, 2 at 110, total 320 / 3 units = 106.66)
Inventory history will now have current stock of 2 printers at an average cost of $110.

Check with your accountant as most businesses use FIFO.

Dave
Top 
 Profile  
 
Display posts from previous:  Sort by  
 
Post new topic Reply to topic  Page 1 of 1
  [ 2 posts ] 

Board index » General Usage » Inventory

It is currently Sat May 18, 2013 12:15 pm
All times are UTC - 7 hours [ DST ]
View unanswered posts | View active topics
 

Who is online

Users browsing this forum: No registered users and 1 guest

 
 

 
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
Jump to:  
cron