For products flagged as special-ordered, the system does not maintain average cost. Average cost for products resides in an internal file called the Costing Table. You can view the data in this file via the View Product Cost Activity routine.
Average cost calculates as follows:
(Current Quantity On-Hand * Current Average Cost) + (Quantity Being Received * Receiving Cost)
(Current Quantity On-Hand + Quantity Being Received)
When you create a product, you use the Average Cost field in the Advanced Product Settings (or the Product Settings) to specify the average cost for the product. Once you initially save the product, the system uses that amount in calculations and you cannot edit the field. After initial creation, you must use the Update a Product Cost (Manual Cost Adjustment) routine to manually update the average cost.
For products flagged as special-ordered, the system does not maintain average cost.
For foreign-vendor products for which quantity has never been on hand, the system updates the average cost when you update the replacement cost, provided the following conditions exist:
you have access to update the Unit Cost field in purchasing routines via the Update Product Replacement Cost Within Purchase Entry Screens field in the Extended Security settings.
you access one of the following routines:
- Purchase Order Acknowledgement
- Product Performance and Purchase Recommendations
you enter or edit a foreign-vendor product for which quantity has never been on hand,
you edit the Unit Cost field and answer Yes to the prompt asking if you want to update the replacement cost with your change.
The replacement cost updates in the Product file, which in turn updates the average cost in the Costing Table, which in turn updates the Average Cost field back in the Product file. Note that the update calculation includes the exchange rate associated with the foreign vendor.