Please, is it possible to find an explanation how the inventory is calculating item costs. I have already read the documentation topics and searched the forum. There is an explanation from March 2016, however, was hoping there is a fresher notes on this subject.
Cost is an average and it uses the purchase prices from each purchase in that average as well as EOD adjustments.
It would be better if you explain why you want to know how it is calculated. Maybe we can help with what you are trying to do
I am struggling to understand how should I enter the inventory adjustments. Specifically the Transactions under the management / Inventory menu. A bit puzzling is should for example the negative adjustments have a negative price. Meaning if the adjustment is negative then should the price be negative as well. If POS is dividing the price with quantity then logically the price should be negative, however, if it uses and absolute value of the quantity then this would wreck havoc with cost calculations.
Along the same lines, how about if I leave them zero. That could lead to having a zero in the price calculations, which naturally would distort the actual purchase price.
You should be using end of day records to adjust inventory.
OK, got it. I recall reading somewhere in docs that need to use Transactions, but this could of being V4.
EOD records certainly make it easier. However, this makes me still wonder how does minus or plus affect the price, or does the price calculation ignore those corrections?