Wasp Barcode Inventory Control - Manual (Page 80)

InventoryControl Printable Help
you will need to decide which stocking unit to use. For example, if you have
Rope as an item and it costs you $0.12 a foot, you would enter 12 in the Cost
field and Feet as the Stocking Unit (entered on the Additional tab). If you rarely
sell the rope in exact multiples of feet, you may want to enter your Stocking Unit
as Inches, since this is the lowest unit measured, and enter your cost per inch in
the Cost field. It is up to you how you want to calculate this; however, you should
make sure that the Cost you enter is the cost for one whole Stocking Unit (either
Feet or Inches, in our example).
Keep in mind that you can enter a new cost on the Add Inventory screen if you
purchase this item at a discount.
For a detailed description for using Cost Tracking and Average Costing,
please see the topic Using Cost Tracking and Average Costing.
Cost Method
Select how you want InventoryControl to calculate cost for this item. Options are:
Legacy Method - This is the method used in previous versions of
InventoryControl. The legacy method uses FIFO and manages cost by location
and track by level.
Note: If you upgrade your version of InventoryControl to version 6 (which
contains additional methods), all existing items will be imported with the legacy
method. You can change to a new option on the Edit Item screen.
Moving Average - When this method is used, the average cost of a particular
item is recalculated based on each purchase. Cost is calculated on the item
level.
FIFO - When this method is used, the inventory that is added first is removed
first. Cost is calculated on the item level.
LIFO - When this method is used, the inventory that is added last (most recently)
is removed first. Cost is calculated on the item level.
For a detailed description for using Cost Tracking and Average Costing,
please see the topic Using Cost Tracking and Average Costing.
Average Cost
This is a calculated value that averages the cost paid for the current Quantity.
This will be blank when you are entering a new item, but will appear when you
are viewing the Edit Item screen for an item that has inventory (quantity).
If you have 20 quantity of this item at cost 10.00 and add another 30 quantity at
cost 8.00,
Average Cost = ((20 x 10.00) + (30 x 8.00)) / 50 = 8.80
Removes are calculated using the inventory calculation method you specified.
For example, if you are using the FIFO method, if you later remove 5, 5 of the
$10.00 items will be removed first,
Average Cost = ((15 x 10.00) + (30 x 8.00)) / 45 = 8.67
When calculating Average Cost, the software does not include records that have
an average cost of zero. When you run an Inventory Cost Report, the software
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