A2000 ONLINE SUPPORT DEPARTMENT
KNOWLEDGE BASE
CASE: WEIGHTED AVERAGE COSTING
Weighted Average Cost in A2000ERPconsiders all stock as weighted cost across “all warehouses”. This is to achieve a consistent averaging effect, rather than each warehouse having its own distinct average cost.
However in light of this averaging capability, we may encounter certain cases of stock ledger showing “0” quantity with a negative cost. Prima facie, it looks like a problem, but is actually not a problem.
CASE 2: FIRST IN FIRST OUT (FIFO) COSTING
For FIFO Costing in A2000ERP, the cost of stocks is considered as specific cost per warehouse location. This is to allow each WH location to maintain their own cost for products. User must select correct WH to cut the stock or else you may have stock in one location and runs negative in another location – giving rise to costing issues.
CASE: STANDARD COSTING
Standard Costing in A2000ERPconsiders all stock cost as standard cost without reference to any warehouse locations. This is to keep the mandated cost regardless of locations received or issued, quantities on hand (or even negative quantities). It is extremely flexible, but users should check with their accountant whether such costing method is acceptable within their respective industries.
END
Was this article helpful?
That’s Great!
Thank you for your feedback
Sorry! We couldn't be helpful
Thank you for your feedback
Feedback sent
We appreciate your effort and will try to fix the article