Difference between revisions of "Inventory: Understanding Average Cost"
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| Line 32: | Line 32: | ||
{| | {| | ||
| width="33%" valign="top" | | | width="33%" valign="top" | | ||
| − | + | Here, a purchase receipt comes between the +Reversal and -Sale record. | |
{| class="wikitable" | {| class="wikitable" | ||
| − | ! TxType !! | + | ! TxType !! QTY !! ACCUMQTY !! COST !! ACCUMBAL !! AVGCOST |
|- | |- | ||
| − | | B || 100 || 100 || 15 | + | | B || 100 || 100 || 15 || 1500 || 15 |
|- | |- | ||
| − | | S || -50 || 50 || 15 | + | | S || -50 || 50 || 15 || 750 || 15 |
|- | |- | ||
| − | | I || 10 || 60 || 20 | + | | I || 10 || 60 || 20 || 950 || 15.83333333 |
|- | |- | ||
| − | | S || 200 || 260 || 15.83333333 | + | | S || 200 || 260 || 15.83333333 || 4116.666667 || 15.83333333 |
|- | |- | ||
| − | | I || 10 || 270 || 20 || 200 | + | | I || 10 || 270 || 20 || 200 || 15.98765432 |
|- | |- | ||
| − | | S || -200 || 70 || 15.98765432 | + | | S || -200 || 70 || 15.98765432 || 1119.135802 || 15.98765432 |
|} | |} | ||
| width="33%" valign="top" | | | width="33%" valign="top" | | ||
| − | + | Here, The +Reversal comes immediatelyh before the -Sale record. | |
{| class="wikitable" | {| class="wikitable" | ||
| − | ! TxType !! | + | ! TxType !! QTY !! ACCUMQTY !! COST !! ACCUMBAL !! AVGCOST |
|- | |- | ||
| − | | B || 100 || 100 || 15 | + | | B || 100 || 100 || 15 || 1500 || 15 |
|- | |- | ||
| − | | S || -50 || 50 || 15 | + | | S || -50 || 50 || 15 || 750 || 15 |
|- | |- | ||
| − | | I || 10 || 60 || 20 || 200 | + | | I || 10 || 60 || 20 || 200 || 15.83333333 |
|- | |- | ||
| − | | S || 200 || 260 || 15.83333333 | + | | S || 200 || 260 || 15.83333333 || 4116.666667 || 15.83333333 |
|- | |- | ||
| − | | S || -200 || 60 || 15.83333333 | + | | S || -200 || 60 || 15.83333333 || 950 || 15.83333333 |
|- | |- | ||
| − | | I || 10 || 70 || 20 | + | | I || 10 || 70 || 20 || 1150 || 16.42857143 |
|} | |} | ||
| − | | width=" | + | | width="33%" valign="top" | |
If sale and reversal are together - it doesn't matter the sequence! | If sale and reversal are together - it doesn't matter the sequence! | ||
{| class="wikitable" | {| class="wikitable" | ||
| − | ! TxType !! | + | ! TxType !! QTY !! ACCUMQTY !! COST !! ACCUMBAL !! AVGCOST |
|- | |- | ||
| − | | B || 100 || 100 || 15 | + | | B || 100 || 100 || 15 || 1500 || 15 |
|- | |- | ||
| − | | S || -50 || 50 || 15 | + | | S || -50 || 50 || 15 || 750 || 15 |
|- | |- | ||
| − | | I || 10 || 60 || 20 | + | | I || 10 || 60 || 20 || 950 || 15.83333333 |
|- | |- | ||
| − | | I || 10 || 70 || 20 | + | | I || 10 || 70 || 20 || 1150 || 16.42857143 |
|- | |- | ||
| − | | S || 200 || 270 || 16.42857143 | + | | S || 200 || 270 || 16.42857143 || 4435.714286 || 16.42857143 |
|- | |- | ||
| − | | S || -200 || 70 || 16.42857143 | + | | S || -200 || 70 || 16.42857143 || 1150 || 16.42857143 |
|} | |} | ||
|} | |} | ||
Revision as of 18:45, 25 October 2023
Simple Case
Inventory Simple Case - Avg Cost IS impacted by Sequence!!!
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Inventory With Reversal - All Positive
Inventory with a sale reversal, but keeping it positive! All good, but sequence matters
|
Here, a purchase receipt comes between the +Reversal and -Sale record.
|
Here, The +Reversal comes immediatelyh before the -Sale record.
|
If sale and reversal are together - it doesn't matter the sequence!
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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:
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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.
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