Weighted Average

This setting keeps a record of the average purchase price per unit of each Item.

Double-click 'Weighted Average' in the 'Settings' list in the Stock module to open the 'Weighted Average: Browse' window. This lists the existing Weighted Average records. Double-click a record in the list to edit it, or add a new record by clicking the [New] button in the Button Bar. Usually, you will not need to create records yourself because they are created automatically when Goods Receipts are approved and saved, providing the Goods Receipts have a Location. If a Weighted Average record already exists for a particular Item/Location combination, its average purchase price will be recalculated, taking the new Goods Receipt into account. Goods Receipts with no Location will not affect any of the records in this setting.

Since a separate record is kept for each Item/Location combination, the average cost price shown may be different to that shown on the 'Costs' card of the Item screen, which takes all Locations into account.

The average cost price includes any extra costs such as carriage and customs duties. In the case of a Weighted Average record being created, it also takes into account all previous Goods Receipts for the Item/Location combination. This situation will occur if you delete the previous Weighted Average record.

The information in this setting will be used to value your stock balance in the Stock List report and to calculate the value of outward stock transactions if you are using the Weighted Average Cost Model together with the Weighted Average per Location option.