Calculating Average Cost

Below is the process to manually calculate the current average cost of a part. By utilizing the method below, you will be able to verify the average cost displayed in RIMSS on any part number in your system.

Navigate to Reports > Inventory Items > Item Detail Report 

1. Select your location. 

2. In the Document Type drop down, ensure that all document types are selected.

3. Enter the part number in the Item # pre-fetch filter. 

4. Set your date range to All and click Fetch.

5. In the Quantity Column, add a post-fetch filter of Quantity is greater than 0.00. Ensure that your filter looks the same as the one below. You can save this filter in a layout to simplify pulling this report in the future.

6. Add a sum to the footer to display the totals of the Quantity and Cost columns.  You can right-click on the bottom bar on the screen under the column header to add the function.

6. Divide the cost by the quantity to arrive at your average cost.  

In this example:

$1,696.66 divided by 197 equals an average cost of $8.6125

RIMSS Average Cost is calculated at $8.6716 which is slightly different. You may see these small differences due to rounding of the average cost over time.

The method above works in all cases except when the qty of the part was zero at the time of a Hard Accounting Close. In those cases, the date range on the Item Detail Report will need to start with the last time there was a hard close AND the qty on hand was zero.