Pmp - stock valuation

Whatever your role, you may want to understand how Easilys works when the stock valuation method is set to WAP (Weighted Average Price).

BUSINESS NEEDS

The weighted average cost is an accounting concept used to determine the average value of stock.

The WAC is calculated with each stock entry movement. The calculation is as follows:
((Incoming qty * Unit price in) + (Qty in stock before movement * WAC)) / Qty in stock after movement.

Note: the stock valuation for a product using WAC: quantity x WAC unit price may differ from the displayed amount or the amount calculated manually due to rounding to the third decimal place (e.g., a unit price of €2.3125 rounded to €2.313 impacts the valuation).

GENERAL INFORMATION

Settings

The stock valuation method is determined from the Profile > Site parameters.

It is only possible to change the valuation method after closing an inventory and before any product movement (entries, exits).

Note that after changing from WAC to FIFO, stock outputs previously made under WAC will be processed as WAC (without allocation to FIFO).

Originally published at https://help.mapal-os.com/easilys/profile-easilys/site-parameters/pmp-stock-valuation/