Difference between revisions of "Inventory: Understanding Average Cost"
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| Line 122: | Line 122: | ||
| S || -200 || -140 || 15.83333333 || -2216.666667 || 15.83333333 | | S || -200 || -140 || 15.83333333 || -2216.666667 || 15.83333333 | ||
|- | |- | ||
| − | | I || 10 || -130 || 20 || | + | | I || 10 || -130 || 20 || 2016.666667 || 15.51282051 |
|- | |- | ||
| S || 200 || 70 || 15.51282051 || 1085.897436 || 15.51282051 | | S || 200 || 70 || 15.51282051 || 1085.897436 || 15.51282051 | ||
|} | |} | ||
|} | |} | ||
Revision as of 18:49, 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
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Here, a purchase receipt comes between the +Reversal and -Sale record.
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Here, The +Reversal comes immediatelyh before the -Sale record.
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If sale and reversal are together - it doesn't matter the sequence!
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Inventory With Sale/Reversal - Gets Negative
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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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