The Parts Master File > Average Cost

Average Cost

Why:

Markets use either replacement cost or average cost to calculate the cost of purchases. The method used is controlled by a parameter.

 

Where:

From the Part View select the required part and double-click. This will display the Part Maintenance window for the selected part.

 

How:

In the Part Maintenance window, the average cost for the part is displayed in the Sale tab. The average cost is calculated in the following ways:

 

For DSP goods receiving there are four stages to the calculation:

•      Current average cost value x current stock balance = XXX

•      New receipt value x stock replacement cost (for order class 3) or daily replacement cost (for order class 1) = YYY

•      XXX + YYY = ZZZ

•      ZZZ/stock balance + new stock balance = average cost

 

For Manual goods receiving there are also four stages to the calculation:

•      Current average cost value x current stock balance = XXX

•      New receipted value x goods receiving quantity = YYY

•      XXX + YYY = ZZZ

•      ZZZ/stock balance + new stock balance = average cost

 

When stock is adjusted, Fusion automatically recalculates a new average cost. For example:

•      Stock adjust part no A, quantity 1

•      Current average cost = 10,00

•      Current stock balance = 5

•      Calculation: 10,00 (avg cost) x 5 (stock balance) = 50,00 (X)

•      10,00 (avg cost) x 1 (stock adjustment quantity) = 10,00 (Y)

•      50,00 (X) + 10,00 (Y) = 60,00/6 (stock bal + adjustment qty) = 10,00