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Calculating the Inventory Average Cost

You can calculate inventory based on the average cost of goods received. This process looks at all receiving records for each item and calculates the cost of the inventory based on an average cost of inventory since inception.

Figure 1-52 Calculating the Inventory Average Cost

1. On the toolbar, click Warehouse, click Inventory Valuations, and then click Calculate Inventory Average Costs.
2. Select the variables you want to include in the calculation from the following options, and then click Start:

   • Tax On Goods Received: Select this option to include item taxes.

   • Freight Charged On Goods Received: Select this option to include item freight charges.

3. After the process completes, run the Inventory Average/FIFO Cost Valuation Report for the Average Cost, and then restore previous inventory cost valuations.

   See Running the Inventory Average/FIFO Cost Valuation Report and Restoring Previous Inventory Cost Valuation for instructions on generating the Inventory Average/FIFO Cost Valuation Report and restoring previous cost valuations.