Savance Enterprise Support

Weighted Average Cost is the method of calculating Ending Inventory Cost that Savance Enterprise uses.  Ending Inventory Cost is the amount of money spent to get the goods you have in stock at the end of the fiscal year.  Weighted Average Cost starts with the Cost Of Goods Available For Sale and divides it by the Number Of Units Available For Sale, resulting in the Weighted Average Cost Per Unit.  The Ending Inventory At The End Of The Year is then determined, and is multiplied by the Weighted Average Cost Per Unit to give us the Ending Inventory Cost.  Here is some math:

Cost Of Goods Available For Sale = Beginning Inventory At The Start Of This Year + Purchases Within This Year

Weighted Average Cost Per Unit = Cost Of Goods Available For Sale ÷ Number Of Units Available For Sale

Ending Inventory Cost = Weighted Average Cost Per Unit × Ending Inventory At The End Of The Year

In a nutshell, Savance Enterprise keeps track of all the varying costs you purchase items for throughout the year, and performs these calculations for you.  You can find the Weighted Average Cost for a particular item in the Valuation tab of the Item Manager, along with the Purchase Order History.

The Purchasing Order History conveniently shows you the PO Numbers, Order Dates, Quantities Received, Costs, and Unit Amounts, for your reference.

The Average Weighted Cost can be used for Inventory Valuation, and you can give it a higher or lower priority than the other types of costs associated with an item.