Hello! Using cloud version!
FYI I’m not an accountant so I apologize for my ignorance.
“Average cost” under “Inventory items” is an average based on purchase invoices and “freight-in” charges associated with that item, is that correct?
When doing a write-off the average cost is used automatically, correct?
When doing a journal entry this is not the case. If we have variances in our current stock takes, most likely due to our own mistakes and lacking procedures would it be preferable to use the “average cost” for that item when doing the journal entry? If not what would be suitable?