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Item Cost price in FirstBIT software is calculated according to the Weighted average cost method using a System of linear equations.Anchor start start
The cost of each item is determined based on the weighted average cost of similar items at the beginning of the period and the cost of similar items purchased or produced during the period.
Calculation of Average Cost Price applies only for items.
Balance of Inventory report shows Average Cost Price (ACP) of the items on chosen date (Purchasing > Reports > Balance of Inventory):
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Balance of Inventory (details) contains information for exact Item, Warehouse at the same date as the basis Balance of Inventory.
It shows a list of documents that have changed parameters of ACP:
Apply Characteristics and Batch obligatory if it's applicable for this exact item.
Average Cost Price (ACP) is influenced by factors:
Purchase
Sale
Stocktaking movements
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2) Invoice Received, or some other inward document, were created with earlier date than already posted Invoice.
Then Invoices should be reposted one by one in chronological order to write off items with correct ACP.
ACP is recalculated as Amount / Quantity.
Note!
To avoid sale before purchase, please apply control settings in Administration > Service Settings > Other Service Settings:
- Control Balances When Posting and Undo Posting of Documents option allows checking if item in stock
- Additionally Check Stock Balances on Document Date and Time option checks if item in stock according to posted documents (stronger condition)
3) Credit Note (Goods Return) picks ACP from basic Invoice:
In case, if Credit Note has no basic, then ACP may be added manually at Inventory tab as Cost of Goods Sold:
This field may be hidden, so use Change form option to add it in the table.
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3. Stocktaking MovementsAnchor stock stock
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