Difference between revisions of "Inventory: Understanding Average Cost"
Jump to navigation
Jump to search
| Line 80: | Line 80: | ||
===Inventory With Sale/Reversal - Gets Negative=== | ===Inventory With Sale/Reversal - Gets Negative=== | ||
| + | |||
| + | {| | ||
| + | | width="50%" valign="top" | | ||
Similar to the case where items were positive, the impact of matching Negative and Postive record have no net effect even when the accumlative qty goes negative: | Similar to the case where items were positive, the impact of matching Negative and Postive record have no net effect even when the accumlative qty goes negative: | ||
| Line 97: | Line 100: | ||
| I || 10 || 70 || 20 || 200 || 1150 || 16.42857143 | | I || 10 || 70 || 20 || 200 || 1150 || 16.42857143 | ||
|} | |} | ||
| − | + | | width="50%" valign="top" | | |
If a purchase comes between a negative sale and reversal, the ending avg. cost is impacted, but this is still perfectly acceptable and correct handling for the data given. | If a purchase comes between a negative sale and reversal, the ending avg. cost is impacted, but this is still perfectly acceptable and correct handling for the data given. | ||
| Line 114: | Line 117: | ||
|- | |- | ||
| S || 200 || 70 || 15.51282051 || 3102.564103 || 1085.897436 || 15.51282051 | | S || 200 || 70 || 15.51282051 || 3102.564103 || 1085.897436 || 15.51282051 | ||
| + | |} | ||
|} | |} | ||
Revision as of 18:36, 25 October 2023
Simple Case
Inventory Simple Case - Avg Cost IS impacted by Sequence!!!
| TxType | EFFCTV QTY | ACCUMQTY | COST | TOTCOST | ACCUMBAL | AVGCOST |
|---|---|---|---|---|---|---|
| B | 100 | 100 | 15 | 1500 | 1500 | 15 |
| S | -50 | 50 | 15 | -750 | 750 | 15 |
| I | 10 | 60 | 20 | 200 | 950 | 15.83333333 |
| TxType | EFFCTV QTY | ACCUMQTY | COST | TOTCOST | ACCUMBAL | AVGCOST |
|---|---|---|---|---|---|---|
| B | 100 | 100 | 15 | 1500 | 1500 | 15 |
| I | 10 | 110 | 20 | 200 | 1700 | 15.45454545 |
| S | -50 | 60 | 15.45454545 | -772.7272727 | 927.2727273 | 15.45454545 |
Inventory With Reversal - All Positive
Inventory with a sale reversal, but keeping it positive! All good, but sequence matters
| TxType | EFFCTV QTY | ACCUMQTY | COST | TOTCOST | ACCUMBAL | AVGCOST |
|---|---|---|---|---|---|---|
| B | 100 | 100 | 15 | 1500 | 1500 | 15 |
| S | -50 | 50 | 15 | -750 | 750 | 15 |
| I | 10 | 60 | 20 | 200 | 950 | 15.83333333 |
| S | 200 | 260 | 15.83333333 | 3166.666667 | 4116.666667 | 15.83333333 |
| I | 10 | 270 | 20 | 200 | 4316.666667 | 15.98765432 |
| S | -200 | 70 | 15.98765432 | -3197.530864 | 1119.135802 | 15.98765432 |
| TxType | EFFCTV QTY | ACCUMQTY | COST | TOTCOST | ACCUMBAL | AVGCOST |
|---|---|---|---|---|---|---|
| B | 100 | 100 | 15 | 1500 | 1500 | 15 |
| S | -50 | 50 | 15 | -750 | 750 | 15 |
| I | 10 | 60 | 20 | 200 | 950 | 15.83333333 |
| S | 200 | 260 | 15.83333333 | 3166.666667 | 4116.666667 | 15.83333333 |
| S | -200 | 60 | 15.83333333 | -3166.666667 | 950 | 15.83333333 |
| I | 10 | 70 | 20 | 200 | 1150 | 16.42857143 |
If sale and reversal are together - it doesn't matter the sequence!
| TxType | EFFCTV QTY | ACCUMQTY | COST | TOTCOST | ACCUMBAL | AVGCOST |
|---|---|---|---|---|---|---|
| B | 100 | 100 | 15 | 1500 | 1500 | 15 |
| S | -50 | 50 | 15 | -750 | 750 | 15 |
| I | 10 | 60 | 20 | 200 | 950 | 15.83333333 |
| I | 10 | 70 | 20 | 200 | 1150 | 16.42857143 |
| S | 200 | 270 | 16.42857143 | 3285.714286 | 4435.714286 | 16.42857143 |
| S | -200 | 70 | 16.42857143 | -3285.714286 | 1150 | 16.42857143 |
Inventory With Sale/Reversal - Gets Negative
|
Similar to the case where items were positive, the impact of matching Negative and Postive record have no net effect even when the accumlative qty goes negative:
|
If a purchase comes between a negative sale and reversal, the ending avg. cost is impacted, but this is still perfectly acceptable and correct handling for the data given.
|
