Average cost and unit cost

hansika · 2008-10-15

Hi

What is the exact difference between Average cost and unit cost field in Item card.
Because I created a new item , costing method is FIFO ,
I purchased items with different costs .
When it goes to the fields the both fields have same values like Average cost ( Lcy) = 156.66667 Unit cost = 156.66667
Could any expert throw what is exact dffernce between the fields.
Is there any chance to differ both values . ?

Even I gone through the F1 Help, I could not understand .

Better to throw one example when the costs will differ.

ajaykt_2000 · 2008-10-15

hi
Average cost is a cost which calculate sum of cost amout(Actual) and Cost Amount (expected) in value entry table the amount of this field is divided by total qty on item ledger entry qty field while unit cost is depend on the costing method which is you selected in fifo method Unit Cost = Inventory Value of items on hand (expected cost + invoiced cost) / Quantity on Hand

Savatage · 2008-10-15

& don't forget to run your adjust cost batch job

hansika · 2008-10-16

Thanks experts,

Even I run the batch job Adjust item cosat entries.

still it is showing the same values.

Let me know the exact difference . :-k

AdamRoue · 2008-10-16

You need to process items through and begin to understand.

Load a purchase order, receive it, invoice it, load another PO for the same item, receive it at a different cost. start to track the unit cost at each stage.

Average cost and unit cost

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