Suggested by Marco Roberto – New
The idea is not include positive inventory journal transactions in the average cost calculation, in the inventory close. The average cost must include purchases and adjustments only.
Here is an explanatory example of a test:
D365 ASIS MODEL
- As of 01/01/2022 the initial balance has qty 200 value (€) 86 and average price 0.430
- On 02/01/2022 enters a supplier order of qty 150 value (€) 15 the average price is 0.289
- On 03/01/2022 a negative consumption count is made of qty 60 value (€) 17.31 the average price is 0.289
- On 04/01/2022 a positive adjustment is made of qty 50 value (€) 14.43 the average price is 0.289
- On 05/01/2022 a supplier order of qty 100 value (€) 1500 enters the average price is 3.632
- On 06/01/2022 a positive adjustment is made of qty 5 value (€) 18.16 the average price is 3.632
- On 31/01/2022 a monthly closing recalculation of consumption is made at the updated average price of qty 0 value (€) 177.01 the average price is 3.239
- At the end of the operations the weighted average cost will have qty 445 value (€) 1439.27 with an (incorrect) Average Price of 3.234
The final average cost of 3.234 is "wrong" due to two transactions relating to positive inventory journals, which are managed as if they were purchases and are calculated in the average of the calculation.
IMPROVED AVERAGE COST CALCULATION MODEL
- As of 01/01/2022 the initial balance has qty 200 value (€) 86 and average price 0.430
- On 02/01/2022 enters a supplier order of qty 150 value (€) 15 the average price is 0.289
- On 03/01/2022 a negative consumption count is made of qty 60 value (€) 17.31 the average price does not change
- On 04/01/2022 a positive adjustment is made of qty 50 value (€) 14.43 the average price is 0.289 the average price does not change
- On 05/01/2022 a supplier order of qty 100 value (€) 1500 enters the average price is 3.558
- On 06/01/2022 a positive adjustment is made of qty 5 value (€) 17.79 the average price does not change
- On 31/01/2022 a monthly closing recalculation of consumption is made at the updated average price of qty 0 value (€) 32.70
- At the end of the operations, the weighted average cost will have qty 445 value (€) 1601.00 with a (corrected) Average Price of 3.558