Hi,

I had a question regarding the cost price calculation. I am using the session 'Calculate Cost Prices' [ticpr2210m000] to calculate the product cost price by using the cost price calculation configuration: Ap, Cp, Lp and Si.

As I understand, when Ap is set as highest priority, then the cost price should be calculated as total purchase receipt amount divide by total received quantity regardless the inventory quantity on hand when the cost price calculated.

But, I have a example as below to show that the cost price is calculated based on weighted average:

1/3/2009 - Purchase Receipt 100 pcs with price 1.00

2/3/2009 - Production Issue 40 pcs

5/3/2009 - Purchase Receipt 200 pcs with price 2.00

Recalculate product cost price on 6/3/2009, the new cost price is 1.77. Based on my checking, the new cost price 1.77 is derived from:

60 with price 1.00

200 with price 2.00

Total amount: 460

Inventory on hand: 260

New cost price = 460/260 = 1.77

If my understand on Ap is not wrong, the new cost price should be 1.67

which is derived from:

100 with price 1.00

200 with price 2.00

Total amount: 500

Total received quantity: 300

New cost price = 500/300 = 1.67

Anyone can help?

Thanks in advance.

With Regards,

Jin Seong