This article will explain the difference between what Average Cost is and Cost

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 $11 cost

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

  • Vendor receiving / Vendor Invoice

  • the cost is manually changed by the user