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 |