Average Cost


I prepare my production order which includes various inventory items. The final item to be sold is also shown in inventory and gives me an average cost that is incurred. I recently received an order with delivery 30 days from today, and as I received payment as well, I booked the sales order and sales invoice and recorded money received.

Now since the order quantity is greater than my current inventory a new column with back order is displayed which I have read about. However, the average cost disappears next to my finished product, is there no way for me to know what my average cost is as I keep increasing my inventory.

If my understanding is right, since there is no stock showing on the system (because its been recorded as sold) there is no denominator to divide the amount spent .

Is there a work around for me to keep track of my average on the system? The reason being I have various suppliers, supplying me with the same product depending on availability and there is always a price fluctuation. The average cost helps me understand what my minimum benchmark should be.


You are correct, an average cost can only exist if there is actual Inventory.

Yes, you can Edit the Inventory Item and add that figure to the Cost Price field, this will list separately on the Inventory Items screen and will only change if you change it.

That wont work because of the fact that I my inventory prices fluctuating doe the same product. And I have noticed my average cost move up as well as down. Is there no way for the system to take count when item is delivered ?

Just thinking loud, if there is any other possibility.

The Cost Price suggestion was to provide a guidance figure (middle of the range) only not an actual figure.