This article will explain the difference between what Average Cost is and just Cost
Keep in mind that Cost in Blackpurl is always without any taxes
Average Cost
Average cost represents the average per item cost of the in stock inventory for the part
Quantities currently in stock could have been received at different costs so average cost means that we have taken an average of those costs and provided you with a figure
For example:
- Dealership has received a part into stock at the cost of $10
Dealership received the same part again into stock at the cost of $11
Dealership now has 2 stock on hand of this part
- The average cost would be $10.50
Calculated at ($10 + $11) / 2
Cost (Item) and Cost (Package)
Cost (Item) and Cost (Package) represents the last known cost of the part
This is the cost used when populating a part on a Vendor Order
There are only 3 possible ways this value is update:
- Price file import - the cost is changed as per what the price file import indicates
- Vendor receiving / Vendor Invoice - the cost is updated when the Vendor Invoice cost is finalised etc
- the cost is manually changed by the user