Hi guys, yeah, that's what I've always done. Just a weekly or monthly calc of the current average, based on the quantity left in stock and the original cost.
We used FIFO extensively, so to evaluate the inventory you would just line up the receipts in descending receipt order, and then start stepping through them while subtracting each receipt from the total. So say you had 28 in stock, and there were three receipts of 5,10 and 15 each with different costs. You would subtract 5 from the total oh (On Hand), and add 5*it's cost to the running total cost. Next receipt you subtract 10 from the oh and add 10*it's cost to the RT. On the final calc, you would only have 13 left in oh, so you would do 13*it's cost add to RT, exit out of the loop, and divide the RT by 28 and bingo you got your average cost for those 28. This allowed us to calculate the average cost of the stock on hand without modifying every inventory transaction program on the system, which would have been a ***MAJOR expense*** during upgrades, not to mention an incredibly expensive task in terms of initial programming as well. I always refer to that as the "ala carte" method.... Funny, we tweaked the program to make an inventory aging report, and called it IM.AGING - but none of the senior staff at the time would accept that name and made us change it. :-) Now that I'm 14 years from retirement I can't say I blame them...heh... Allen E. Elwood www.tortillafc.com Quality Code Since 1978 -----Original Message----- [mailto:[EMAIL PROTECTED] Behalf Of Brutzman, Bill We have done a lot here recently with inventory valuations. Why care about "Moving Average Costs". Consider using receivers as lot numbers and do actual costs of what is there. We do our valuations on a monthly basis. If weekly or daily costs are needed, consider saving this daily data to a little database. I guess that we could talk about it... --Bill 973.471.7770 x145 -----Original Message----- [mailto:[EMAIL PROTECTED] Behalf Of Baker Hughes Hey, I have a distribution/manufacturing question. Could some of you share your formula for calculating Moving Average Cost. Consider: Assume you are receiving stock into the warehouse, and recalculating your new average cost upon each receipt (which later serves as basis for your cost-plus price quote, but that's immaterial to the formula). <snip> ------- u2-users mailing list [email protected] To unsubscribe please visit http://listserver.u2ug.org/
