Average Price

The average price for an on-hand balance is the price calculated each time a stock transaction is entered. It is saved for each item/facility and is used mainly for calculating inventory value and capital tied up.

Averages prices are calculated as follows:

Average Price = [TP * TQ + AP * (AQ+IQ+RQ-TQ)] / (AQ+IQ+RQ)

TP

Stock transaction price

TQ

Stock transaction quantity

AP

Valid average price. If AP = 0, TP is used.

AQ

Approved on-hand balance

IQ

On-hand balance under inspection

RQ

On-hand balance rejected

Related topics