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HangedUpOnMe's avatar
HangedUpOnMe
Experienced Cover User
4 years ago
Solved

Average cost is wrong

I noticed MYOB giving me an incorrect average cost for an item.   The item had a recent shipment of 854pcs at $19.97   There are now only 754pcs left in stock, but the average price is showing $1...
  • Mike_James's avatar
    Mike_James
    4 years ago

    Hi HangedUpOnMe , After the purchase of 854 items, there were 2613 items in stock at a total cost of $40800.88, or $15.61 each. Subsequent sales would have used that as the cost of sale, so your latest average cost figure is consistent with that. AccountRight does not apply FIFO costing. 

Mike_James's avatar
Mike_James
Ultimate Cover User
4 years ago

Hi HangedUpOnMe , After the purchase of 854 items, there were 2613 items in stock at a total cost of $40800.88, or $15.61 each. Subsequent sales would have used that as the cost of sale, so your latest average cost figure is consistent with that. AccountRight does not apply FIFO costing. 

  • HangedUpOnMe's avatar
    HangedUpOnMe
    Experienced Cover User
    4 years ago

    Thanks for thw reply

     

    Yeah, it is as i thought.

    It works well when there are only small changes in purchase price, but this year there have been MASSIVE and rapid increases in purchase prices, then this system doesnt work so well under these circumstances, but it is what it is.

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