Average Cost at Item Card

RachelSoon

Hi there,
my Customer is having some problem with the Average Cost at the Item Card when the stock level become negative. However, this problem does NOT happen to all Items.

The Average Cost will become Blank and Unit Cost displayed the last Average Cost and certain Item's Average Cost still remain.

Anyone have any ideas about this? the current system has applied up to hotfix 18. Anything to do with the hotfix?

Please advise.

Thank you.

Regards
Rachel

Kowa

The Field "Average Cost (LCY)" on the item card is calculated in Codeunit 5804 ItemCostManagement, basically by summing up the Value Entries "Cost Amounts" of the item and dividing by the invoiced amount, but also depending on the costing method of the item as well as very much on the Report
795 "Adjust Cost Item Entries", this should be run as often as possible.

If stock is negative, this is set to 0 to prevent a negative value from being displayed. There have to be some open positive item ledger entries with an invoiced quantity for a proper calculation of this value.

RachelSoon

Hi Kowa,
Thank you for your reply.

However, there are NOT ALL the item with negative stock is having the 0 Average Cost.
i've tested to make an item to fall below the stock level, then run the Adjust Cost peroidic activitity. However, the average cost does not change to 0.

Regards

Kowa

There must be some postive item ledger entries which cost amount has not been transferred to the negative item ledgers.

What costing method is used? Is it the same for all items?

Is there more than one location ?
The Item cost adjustment works separately within each location. Even with negative stock there can be positive stock in one location ( which leads to a postive Average Cost value) and negative stock in the other(s). The negative item ledgers then remain unadjusted ( with their expected cost amount) until there are positive entries for this location.

Check also if there is a Datefilter ( or other flowfilters, like Location or Variant Filter) on the item card. The Datefilter is set on the "Valuation Date" ( usually identical to the "Posting date", but can differ when delayed posting ( i.e. not in chronological order ) or revaluation is done) of the value entries before calculation of the average cost.