Stock System Profiles (and Purchase Invoice or Purchase Order Processing documents) allow the system to be configured to update the stock cost price on an average basis during goods received. When updating the cost price the system updates based on the formula of:
(CURRENT-COST x QTY) + (RECEIVED-QTY x COST) / TOTAL-QTY = COST-PRICE
Currently if the updated cost price would result in a zero cost price the system automatically omits the update of cost price and keeps the current cost. Additionally an existing parameter allows the system to omit the update of cost if the received cost is zero (perhaps due to receipt of samples on a FOC basis), but if the current cost price is set as zero (but a non-zero physical qty was recorded) then the system averaged in the value with the current qty at a zero cost. Release 6.4 introduces a new option to omit the average update in these circumstances and instead replace the current stock cost with the receipt cost.
Installation
System Profiles
A new option has been added to the Stock System
Profiles to enable the replacement update of cost. To update select Installation from the main menu followed by Application Manager, then System
Profiles before selecting the Stock
Control application.
Replace with I/P if Stock Cost Zero – when set the system will replace the stock cost with the received stock cost if the current stock cost is zero rather than averaging the receipt in.
Notes
Stock System Profile parameters as to whether to update stock costs apply to Stock Control and Bill of Materials only. Invoicer and Purchase Order Processing have their own document parameters to control the update of stock costing.
However, the option to omit the update of average cost if i/p zero and this new option to replace cost when stock cost is zero are system wide and apply to all the goods received options when they are set to update costs.
Article ID: 83
Created On: Fri, Jun 8, 2012 at 4:08 PM
Last Updated On: Thu, Jun 22, 2023 at 11:35 PM
Online URL: https://kb.datafile.co.uk/article/average-cost-updating-replace-cost-if-stock-cost-is-zero-83.html