Adjusting Average Costs

You have two ways to change Average Cost:

  • Adjust Average Cost manually
  • Set or “prime” Average Cost

Manually adjusting Average Cost

Typically, a product’s Average Cost is recalculated when a PO is received, but this only accounts for purchasing costs, not external product-related costs, such as production, molds, artwork, etc. Those costs can be manually added to adjust the product’s Average Cost. Here’s an example:

  • If 100 units are in stock at $444/piece and a $5000 artwork adjustment is added, Average Cost will be $494.

Select the Amount is per unit adjustment option (shown in the procedure below) to either distribute or apply the adjustment to each unit. This will add the adjustment amounts to be recalculated for Average Cost.

To adjust Average Cost:

  1. Select the Client Setting Enable Average Cost Adjustments.
  2. On the Product Summary, find the Average Cost field and click the hyperlinked value to open the Average Cost detail showing the Average Cost movement.
  3. At the top left, enter the adjustment Amount. This can be a positive or negative value.
  4. For the Amount is per unit adjustment option:
    1. Select it – To apply the adjustment amount to each unit currently in inventory. Example: If you have 100 in stock with Average Cost = 100 and you add an adjustment for 10, the result will be Average Cost = 110.
    2. Unselect it – To distribute the adjustment amount equally across all current inventory of this product. Example: If you have 100 in stock with Average Cost = 100 and you add adjustment for 10, the result will be Average Cost = 100.10 (10/100 = 0.1).
  5. Enter a Reason, such as “Artwork.”
  6. Click Add Adjustment. Average Cost will be recalculated to include the adjustment, which will appear in the grid’s Trans. Type column as Avg_Cost_Adjustment.

Importing Average Cost adjustments

  1. Select Enable Average cost adjustments in the Client Settings.
  2. Bulk-add Average Cost adjustments to multiple products through a file import:
    1. Click Inventory > Import Product Info > Import Product Average Cost Adjustments.
  3. Download the Product Avg Cost Adjustments template and delete the sample data.
  4. Populate the column as explained above. Use values TRUE or False in the IsAmountPerUnit column.
  5. Save the file and Choose File.
  6. Click Import Avg. Cost Adjustments to import the adjustments.

Priming Average Cost

Sellercloud Support can always reset – or “prime” – Average Cost, to set cost to a specific value. This is typically done during initial account setup but can be done whenever you need a reset.

To reset an Average Cost, download/populate this Prime Average Cost import template and submit it to Sellercloud Support.

Average costs can even be backdated to update existing orders that have incorrect item costs.

The client setting Use Weighted Average Cost for PO must be enabled in order for it to work.

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