Addon average cost calculation

Addon cost works in much the same manner as average cost. When you receive a purchase order or a warehouse transfer, the incoming amount is averaged with what is currently on hand to calculated a new addon cost for the total amount on hand (the same way that average cost works).

When you perform purchase order costing and you have a different cost on the invoice than what you received, the change is posted back to the inventory on hand, a new addon cost is calculated, and if some of the product is already sold, the amount of the change in cost for the sold items is posted to COGS and the remainder is put back in inventory (same logic and calculations as average cost).

(Product Warehouse Product Setup On hand + Received + Unavailable) X (Current Addon Cost) + (Addon Amount Being Received) divided by (Product Warehouse Product Setup new On hand + new Received + new Unavailable)