Weighted Average Costing explanation

[rocketpenguin]

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.

[phil]

(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.

[rocketpenguin]

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.

[phil]

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