Fixing Average Cost

Question

If I do not currently have any inventory for an item, do I need to wait until I do have inventory to fix? 
 
 Found this on another topic: 
 Typically, the only way to fix the average costs is to do an IM transaction entry to 0 out the quantity on hand. 
 The average cost "should" then go to -0-. 
 Then re-enter the inventory with a transaction entry at the correct cost.

Tyler Christensen · Accepted Answer

If you receive 100 in at 10$ and then adjust out 100 at a value of only $8 then you would have a situation where you have $0 on hand but a value in inventory of $200. I believe what happens in this case is that Sage will apply that $200 to the next receipt of inventory so in this case if you received in another 100 at $10, the actual average cost per unit would be the $10 plus the $200/100 = $2 for a total of $12 per unit.

Linda KR · Answer

In the current versions of Sage 100 ERP, the average cost will continue to decrease as selling what is not available happens. When the quantity is replentished to a quantity greater than 0 on hand, it rewrites the Im_ItemWarehouse table Quantity on hand and Warehouse value field and the CI_Item Total Quantity on Hand and Total Inventory Value. The Average cost is then calculated Total Warehouse or Inventory Value divided by Quantity on Hand. It does not retain old values as it did in legacy products.

Sage 100

Fixing Average Cost

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