How to report consumptions at the average cost?

How to report consumptions at the average cost?

To record material consumptions at the average cost, you must create a Work Order type "Settings | Work | Work Order Types" and select the "Use Average Cost Price" option available on the "Costs" tab.

When a work order is in a state that allows costs to be recorded and with the work order type having the option "Use Average Cost Price", it is possible to record consumptions by accessing the work order file for which you want to record consumptions in "Work | Work Orders".


The formula applied for the calculation of the average cost price (MAP), is as follows:
PCM = [(Current Stock x Current PCMP) + (Stock In x Price In)] / (Current Stock + Stock In)

For example:
Part P_001 is out of stock. 
30 pieces were purchased, on different days and at different prices;

Intake of 10 pieces P_001 on 20/02/2023 at a price of €1.
Applying the formula:  PCM = 10 x 1 € / 10 = 1 €

Entry of 20 pieces P_001 on 22/02/2023 at a price of €0.5.
Applying the formula:  PCM = [(20 x 0.5 €) + (10 x 1 €) ] / 30 = 0. 67 €​


    • Related Articles

    • How do I report consumptions using a requisition associated with the work order?

      When a work order (WO) is in a state that allows to record costs, it is possible to record material consumption. However, before registering, you should note that: it is only possible to register consumptions if the WO status allows cost ...

    • How to calculate the weighted average cost?

      The weighted average cost price is calculated when parts enter into stock. To enter a part stock, you must access the warehouse tab "Inventory parts | Warehouses", select the warehouse you want to enter stock. The calculation follows this formula: ...

    • How do I report consumptions associated with the work order?

      When a WO is in a state that allows to record costs, it is possible to record material consumption. However, you should consider that: you can only associate the labor with the authenticated user. you can only select warehouses from the company to ...

    • How to report consumptions associated with the work order?

      When a work order is in a state that allows to record costs, it is possible to record  material consumptions. To report material consumptions, you must access the work order file you wish to report the costs to "Work | Work Orders ", select the WO ...

    • How to report the task verification associated with the work order?

      When a work order is in a state that allows to record costs, it is possible to perform the task verification. To check the tasks, you must access the work order file  "Work | Work Orders", select the work order that you wish to check the task of. On ...