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The system maintains average cost based on Landed Costing

Average cost is updated when new stock is receipted on a Purchase Order

• if a purchase order has also freight costs paid to the supplier these will be included in the average cost

• If a purchase order has also “Finance Uplift” involved that % will also be added to the average cost

• Average cost = total cost of stock / qty of stock

  • ie if I have 100 in stock at $1.00 and I receive 100 at $2.00

    • I will then have

      • Total stock cost after receipt = $100 + $200 = $300

      • Total # items = 200

      • Av cost = $300 / 200 = $1.50 each average cost

  • ie if I have 100 in stock at $1.00 and I receive 100 at $2.00

    • AND freight to the supplier on the PO of $100

    • AND 5% Finance Uplift

    • I will then have

      • Total stock cost after receipt = $100 + ($200 + $100) * 1.05 = $100 + $315 = $415

      • Total # items = 200

      • Av cost = $415 / 200 = $2.075 each average cost

Landed Cost refers to adding costs not from the product supplier (eg shipping freight etc)

1. Complex landed costing enables

   1. an estimate to be used on stock receipt to increase averge cost

   2. followed by actuals later entered to adjust average cost if required

2. Simple landed cost enables

   1. Additional costs to be added to the average cost after stock receipt.

See Landed Costing for details

For inter-company Purchase Order from PO to Goods Receipts the price list with the AutoEntity type of "HostCompany" will be used.

Branches

If your organisation has Branches defined on the Host Company (your business/s) then:

1. Price lists are global - all branches can see all price lists

2. Prices on the list are branch specific - and must be updated in the branch.  Prices in one branch have no bearing on prices in another branch