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Cost amount calculation for inventory movement journal need to be consistent.


Using moving weight average item model group,


This particular issue arises only with costs that have decimal representation values. Please review below example for clarity:

 

Consider two items with the same moving average setup scenario:

- For Test1 item: Purchase 5 units at a unit price of 3, resulting in a net amount of 15.

- For Test2 item: Split into two purchase order lines - the first line with 5 units at a unit price of 3, and the second line with 5 units at a unit price of 0. This results in a net amount of 15 for 9 units.


The average unit cost for Test1 item is 3, 

The average unit cost for Test2 item, it's approximately 1.67 (rounded up from 1.666666666666667 = 15 / 9).


When issuing out 4 units from each item through a movement journal:

Test1 item shows a cost price of 3 and a cost amount of -12.

Test2 item shows a cost price of 1.67 and a cost amount of -6.68.


Post the movement journal > go to Inventory Transaction to review:

Test1 item > -4 QTY > Cost amount -12

Test2 item > -4 QTY > Cost amount -6.67


Seem like the cost amount calculation on journal line level and inventory transaction level didn't match.

Category: Inventory
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