Item "Average Cost" with Discount

Mohammed

Problem: Discounts should be considered for Average Cost calculation of an Item

Details:
In Item Card, there is one field "Average Cost LCY" (Invoicing Tab)... The calculation for this field is

(("Cost Amount (Actual)" + "Cost Amount (Expected)") / "Item Ledger Entry Quantity")...
where all the three fields are from matching records of "Value Entry" table....

My requirement is to consider all the Discounts for the item, for the Average Cost calculation... So what I have done is modified the code like this:

(("Cost Amount (Actual)" + "Cost Amount (Expected)" + "Discount Amount") / "Item Ledger Entry Quantity")
where "Discount Amount" is also a field of "Value Entry" table...

But I find that the "Discount Amount" field is always calculated as zero, irrespective of whatever Discount we are entering for the item in a Sales Order...

So which is the actual field that is required for Average cost calculation with discount (if it is not "Discount Amount" field)?

Alex_Chow

The average cost has nothing to do with your sales price or discounts on the sales order...

Mohammed

Average Cost has nothing to do with the Sales Discount.... But my problem is Discount has to do something with the Average Cost Calculation of an Item... The discount applied for an item in a posted Sales Order should be considered for Average Cost calculation of that item...
Average Cost of the Item is calculated each time the Item Card is opened...

Savatage

Mohammed wrote:

But my problem is Discount has to do something with the Average Cost Calculation of an Item... The discount applied for an item in a posted Sales Order should be considered for Average Cost calculation of that item...

Perhaps its the wording. A discount on a sales order will effect or Average "SALE" Price but it has nothing to do with "YOUR" cost of an item.
If an item cost you $1 and you give the customer a 100% discount on that item what do you think your avg cost should be? Yes 1$.

Perhaps you mean a discount on a PO?

Mohammed

Yes, it is discount on PO... Solved O:)

Kowa

Mohammed wrote:

Yes, it is discount on PO... Solved O:)

The "Unit Cost (LCY)" in a purchase line already includes all discounts. Don't change the formula for the function in the item card.