Question

Average cost not pulling for multiple part numbers

  • 17 June 2021
  • 5 replies
  • 41 views

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Was working on price increases and looking at margin and I am showing quite a few parts in our inventory that are not showing an average cost. Does anyone know why? and how do I make sure it still calculates? Any help would be greatly appreciated! 

Thank you!


5 replies

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@stacy16 , 

We have noticed that if there is no on hand quantity that the Average Cost goes to zero. 
No quantity  =No total cost = no average cost


If you do an inventory or PO receipt, Average Cost should recalculate. 

Bill

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An alternative is to use the Last Cost in the Calculate Pending Prices in the Sales Price Worksheet.  When you load inventory items always try to update the Last Cost because the manufacturing processes that roll cost will use Last Cost whenthe Average Cost is zero.

We often try to adjust pricing this ways as well (looking at costs to determine margins).  There is potential pitfall with using the Last Cost - this is typically the last cost paid to the vendor, in base currency.  If you have substantial freight, brokerage etc you will be at risk of not adjusting your sell price correctly.  Last Cost is not a Landed Cost like the Average Cost would take into account.  Finding the last landed cost is only possible through Inventory Transaction History, making sure the “Include Landed Cost in Unit Cost” is also selected.

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good point about landed costs not reflecting the total acquisition cost.  Probably need create a GI and to get the landed cost and select the greater of average and loaded last cost; import the data into the sales price worksheet as pending price and use the Sale Price Calculation function to factor the pending price by the desired percentage.

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Hi All!

We do not use landed cost and out last cost is not at all accurate since at this time we are purchasing from alternative vendors and pricing is (temporarily) higher depending on where we are purchasing from. Hence why we use average cost. Has anyone found a way to bypass this to always show the average cost?

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