Menu Path: Inventory > Reset MA > Reset MA
Moving Average Cost (MA Cost)
it is assumed that the cost of inventory is based on the average cost of the goods available for sale.The average cost is computed by dividing the total cost of goods available for sale by the total units available for sale. This formula will give a weighted-average unit cost that is applied to the units in the ending inventory. The formula is:
- Moving Average = (((Current Balance * Current MA Cost) + (New Quantity * New Price)) / (Current Balance + New Quantity))
MA cost will be adjusted when transactions such as Direct receiving stock (GRN) and Purchase return take place. In order to reset MA cost in Wavelet EMP system.
- Select 'Company'.
- Enter the item code or 'Select Item Code'.
- Click 'Retrieve Stocks'. The Reset MA table will be generated.
- Key in Reference Doc if have, and then Select. User is allowed to select multiple reference documents for per Resset MA.
- The selected references will be shown at the right side.
- The user will need to choose either an option of the 2 available options: New MA Cost per Unit or Total Adjustment.
- New MA Cost Per Unit: Only adjust the cost price for each item, and based on that the total MA Cost will be calculated automatically.
- Total Adjustment: Adjust the total items average cost, and based on that the cost price for each item will be generated.
- Recommend user to type the 'Reason' for future reference.
- Once done , click 'Reset MA Price Now' Button. and MA table will be shown to describe the changes made. The system will also show the previous Reset Moving Average informations for user's reference.