Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Weighted Average Costing explanation
03-09-2012, 04:21 AM,
#1
Weighted Average Costing explanation
Hello!

I've read the manual; I understand the basics of how Weighted Average works, and my setup is set to WA.

First of all, if I am using Weighted Average and I have received purchase orders, where is the current cost displayed for a given Item? My cost in Items seems to reflect zero or the Last Cost (which has nothing to do with WA, as I understand).

Secondly, in what table does it store the weighted average cost? Is it the same as actualcost in the stockmaster? I can see my purchase orders in purchorderdetails, and I could figure out what the cost should be, but where is the WA cost stored in the tables and in WebERP? I want to make sure that it is producing the number I think it is, and that it is applying it correctly in the GL.
Reply
03-09-2012, 06:18 AM,
#2
RE: Weighted Average Costing explanation
(03-09-2012, 04:21 AM)rocketpenguin Wrote: Hello!

First of all, if I am using Weighted Average and I have received purchase orders, where is the current cost displayed for a given Item? My cost in Items seems to reflect zero or the Last Cost (which has nothing to do with WA, as I understand).

When you receive purchase orders the cost remains unchanged. You can see the cost from Select Product screen.

(03-09-2012, 04:21 AM)rocketpenguin Wrote: Secondly, in what table does it store the weighted average cost? Is it the same as actualcost in the stockmaster?

It is stored in the table stockmaster the sum of the fields - materialcost+ labourcost+overheadcost

(03-09-2012, 04:21 AM)rocketpenguin Wrote: I can see my purchase orders in purchorderdetails, and I could figure out what the cost should be, but where is the WA cost stored in the tables and in WebERP? I want to make sure that it is producing the number I think it is, and that it is applying it correctly in the GL.

WA cost is only ever updated based on the invoiced cost of items - you must either enter a supplier invoice against purchase order items received or complete a shipment costing.
Phil Daintree
webERP Admin
Logic Works Ltd
http://www.logicworks.co.nz
Reply
03-10-2012, 02:51 AM,
#3
RE: Weighted Average Costing explanation
Very helpful, Phil. Thank you!

The action of creating supplier invoices actually apply the new weighted average. And the weighted average is a sum of materialcost+ labourcost+overheadcost. I get it.

Other question - Is there anywhere that current weighted average is displayed in WebERP? The cost in Inventory Item detail seems to display only 0.00 as the cost after I create supplier invoices in Weighted Average. So how would I know the current item cost? I can look it up in the stockmaster (adding the 3 costs), but there should be another way in the frontend WebERP for users.



Reply
03-11-2012, 12:53 PM,
#4
RE: Weighted Average Costing explanation
Yes you select the product from the main menu ->Items choose your item e.g. BREAD from the demo then it shows under "Cost"

see http://www.weberp.org/weberp/SelectProduct.php
Phil Daintree
webERP Admin
Logic Works Ltd
http://www.logicworks.co.nz
Reply


Forum Jump:


Users browsing this thread: 1 Guest(s)