Average Cost Problem

When the inventory of an item is finished we do purchase the item via purchase invoice.
Since we have no inventory at this point
Suppose the purchase price is higher than what we had earlier.
The problem is the average cost is calculated with the older cost where there is no older stock

Avg cost calculated on the basis of stock in hand , therefore when sales occurred it automatically adjust the Avg price accordingly.
What i have experienced If stock becomes “0” after selling than new Avg price take place, not on the basis of older stock price.
It only possible if item sold lower price than the purchase price.

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You need to explain in more detail how that happened.

It is possible that you purchased on the same Date as the last sale. so that the last sale and subsequent sales will use the Average item price based on the date you purchased the item.