Average pricing updates the unit price when stock is receipted, issued, returned or when an order price is modified by adding an invoice. Average prices are not updated for stock adjustments or warehouse transfers.


The way average prices are calculated can be shown by using a simple example:


Starting average price is £10.00 per unit and there are 8 in stock.


5 are then receipted at a unit price of £11.00.


There are now 13 in stock with a combined total value of £135.00 (8 x £10 + 5 x £11).


The new average price is calculated by dividing the total value by the total qty, £135.00/13 = £10.38.




A summary of the effects on the average price of different transaction types are shown below:

 


TypeQtyUnit £Total £New Average unit £






Opening stock
8£10.00£80.00






Stock delivery (PO1)
PORC5£11.00£55.00


13
£135.00£10.38






Requisition *
RQIS-2£10.38-£20.76


11
£114.24£10.38






Stock deliveryPORC2£10.00£20.00


13
£134.24£10.32






PO return (PO1)
PORT-1£11.00-£11.00


12
£123.24£10.26






Requisition return *
RQRT1£10.38£10.38


13
£133.62£10.27






Return to stockSTRT1£10.27£10.27


14
£143.89£10.27






Collection note returnCTRT1£10.27£10.27


15
£154.16£10.27


* Please note, when a requisition is added (status EN) the average unit price on the requisition will not change even if the unit price changes before the requisition is submitted, approved, picked or completed.



The current stock average prices can be found in Administration > Stock > Pricing


To see the average price for an item at size level go to the Pricing By Item and Size tab and to see the prices at Warehouse level go to the Pricing By Item and Size and Warehouse tab.





To manually update the average unit price of an item go to Administration > Stock > Pricing > Average Pricing



The top grid shows the Opex Average Cost (current average price) and the Average Receipted Price (average price based on receipted lines only). You can change the View to Detail to see the Average Receipted Prices for 1 Year, 1-3 Years & 1-5 Years worth.


To update an average price click on the item then select either:


- Adjust OPEX Average Pricing - **please be careful if you select this option** - this will automatically update the average price to the price shown under the Average Receipted Price column for ALL items, sizes and warehouses.

- Update Average Price - allows you to manually enter an average price for a particular item and size. You also have the option to apply the same price to all sizes of the item.

- Adjust Single Item Price - this will automatically update the average price to the price shown under the Average Receipted Price column for the record selected.