Question

Average cost different between warehouses

  • 22 May 2023
  • 6 replies
  • 292 views
M
Rank
Userlevel 1

Hi

 

We have 9 warehouses and use average cost.  We want the same stock item to have the same average cost across all warehouses.  Unfortunately, this isn’t working for us, and each warehouse has its own average cost. This makes sales margin reporting a nightmare.  Our auditors are also questioning our inventory costing method.

Can Acumatica do the same average cost for an item across all warehouses?  The help manual says “yes”,

If the Average valuation method (also known as average moving cost) is assigned to the stock item, the unit cost will be calculated as the average weighted cost of all items at the warehouses—that is, the total costs of all quantities of the inventory items at the warehouses divided by the total quantity.

but our support company says “no”.

 

thanks

6 replies

E
Rank
Userlevel 5
Badge +1

A couple of questions - is the valuation method assigned to the item class different for some items? and what is the Average Default Return Cost set to Average or Last Cost?  This could affect the average cost. Can you provide an example where a single item has different average costs for different warehouses?

Eric Wolfe
M
Rank
Userlevel 1

Hi Eric

Thanks for your reply.  Below is transaction details for an item.  You can see the unit cost is different for each of the 3 warehouses. I’ve also attached the item details, item class details, and the warehouses average default return cost.

kind regards

 

Peter

 

 

 

Item details


​​​​
 

Item class details

 

warehouse return costs

 

E
Rank
Userlevel 5
Badge +1

Is the Cost separately checkbox selected for the locations in each warehouse?  This could be affecting the cost of the items within each warehouse.

Cost Separately A check box that you select if the costs for goods available at this location will be calculated separately from costs calculated at the system-level; that is, for FIFO and Average valuation methods, separate cost layers will be created for this location. You cannot select this check box if this is the only location at the warehouse.
  We recommend that you not change this option once it has been set.

If the location is linked to a project, this check box is selected by default and cannot be edited.

 
Eric Wolfe
M
Rank
Userlevel 1

Hi Eric

That was my first thought and no, the cost separately is not ticket. 

 

kind regards

 

Peter

 

 

manikantad18
Rank
Userlevel 7
Badge +12

Hi @ericwolfe74 

The below article gives you some clarity 

 

Acumatica Functional Consultant
M
Rank
Userlevel 1

Hi Manikanta

 

Thanks. I see that the last post from 4 months ago on that thread was:

 

Hi Folks, I have a question on this topic:

Is it possible to configure Acumatica to use stock item’s general Average Cost instead of Warehouse specific Average Cost for Issue (shipment) Transactions? 

 

This implies that Acumatica does not do average cost across all warehouses but is per specific warehouse.  That’s not general accounting practice and makes margin reporting a problem.  Is this right?

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