User guide

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Chapter 6: Using Cost Tracking and Average Cost
How is Average Cost and Item Value Calculated?
Cost handling in InventoryControl is designed to show you the average cost and
current value of your inventory. You can use this cost information for other
purposes as well, such as determining pre-tax and purchase order totals and
receiving totals.
How do I determine my Stocking Unit
The quantity of an item on all screens and
reports is counted using the Stocking Unit
you specify or eaches (ea.) if you do not
specify a unit. The stocking unit can be
entered for each item on the New or Edit
Item screen’s Additional tab (shown below).
When you enter the s tocking unit, you need
to pick the smallest unit of measure that you
will ever use to remove a whole item. A good
test to use when deciding what the
stocking unit should be is to ask
yourself how you count and refer to one
unit. Think about what your answer
would be if you were asked to count
how many of this item you have. If the
answer is 100 feet of rope, for example,
“feet” or “ft.” is the Stocking Unit. If the
answer is 20 scanners, then “ea.” is the
Stocking Unit because “each” is
common when the unit itself is not a standard unit of measure. If the answer is
100 Boxes of Nails, then “box” or “bx.” is the Stocking Unit.
We will address what you do if you remove in partial quantities or purchase the
item in larger quantities than the stocking unit later in this chapter.
TIP: As there is limited
space on the reports and screens,
we suggest you always put in an
abbreviation for the Stocking Unit.
Figure 36