Cost price averaging is a powerful feature to have an accurate representation of profit. This feature is accessed by using the Receivings module after setting up the required information in Company > Settings (described below).
Enable Cost Price Averaging
To enable cost price averaging, select the Company module, go to Settings and use the search box to search for Calculate Average Cost Price from Receivings, and check the box.
Once you check this box, a new option will appear, Averaging Method. Select from the drop-down list below which averaging method you want coreSTORE to use to calculate the average cost price (Moving Average, Historical Average, Don't average, use current received price)
For more information about how these options work, they are explained at the end of this article.
The result of this calculation will be shown in the item information when using the PO & Receiving interface.
Averaging Methods Explained
Select this option if you want coreSTORE to calculate cost price by using the current cost price and inventory count and is averaged with the current amount received and quantity. It is a very simple, yet accurate calculation of cost price.
Select this option if you want coreSTORE to use all past data about receivings for an item and calculate a brand new average using all data points about when an item has been received.
Don't average, use current received price
Select this option if you do not want coreSTORE to calculate cost price according to current amount received and quantity or all past data, but just want to be shown the current received price.