Introduction

What is this feature, why does it exist, what problem does it solve?The Cost Averaging system will move your company away from either using Standard cost or maintaining your average cost on a spreadsheet outside of AMS. Using Cost Averaging the system calculates the average cost of a part based on the elements setup in the new ACE table (example for Imports would be Wine Cost, Freight Cost, Duties Cost elements), quantity on hand, quantity received and then averages the cost. Cost Averaging works with transactions done through the PO Module and EIT screen as well as with the Bulk Inventory and Materials Requirements module to build the average costs for parts in the system.

Rather than posting receives through the Adjustments Journal, going forward all RCV type transactions will be posted through the new Receives Journal, IN006. This journal will post the actual cost of the item when received and in your cost of goods sold journal it will post the average cost that the system calculates for that month for the parts that were sold.

Table of Contents

Cost Averaging Equation

Central Table Set Up