Forum Discussion

DePez's avatar
DePez
Experienced Cover User
5 years ago
Solved

Current value/ Average cost wrong.

Hi,   I am having trouble with a few items that are showing the wrong average cost and current value. I spoke to someone at MYOB yesterday for over an hour but he said it just happens. But it is ca...
average cost
Inventory
  • Steven_M's avatar
    Steven_M
    5 years ago

    Hi DePez 

     

    The average cost of an item is calculated as the Current Value of the item divided by the Quantity on Hand of that item. So from what I can see of the item you have provided in your screenshot, the item is correctly showing the average cost: 356.22 / 15 = 23.7483

     

    You also indicated that the purchase price of the item, this will impact the purchases of the item and thus the Current Value. However, they are not directly related i.e. in some cases these would not be similar. This typically happens if you have purchased the item at a significantly higher value or done an inventory adjustment of that item. I would be taking a look at purchases and inventory adjustments of that item to review the prices used on those transactions.

Steven_M's avatar
Steven_M
Former Staff
5 years ago

Hi DePez 

 

The average cost of an item is calculated as the Current Value of the item divided by the Quantity on Hand of that item. So from what I can see of the item you have provided in your screenshot, the item is correctly showing the average cost: 356.22 / 15 = 23.7483

 

You also indicated that the purchase price of the item, this will impact the purchases of the item and thus the Current Value. However, they are not directly related i.e. in some cases these would not be similar. This typically happens if you have purchased the item at a significantly higher value or done an inventory adjustment of that item. I would be taking a look at purchases and inventory adjustments of that item to review the prices used on those transactions.