Updating Average Costs for Items

Select Inventory Price & Cost Updates (G4123), Update Average Cost.

Two methods exist for updating average costs for items:

Interactive.
You can set the system constants to specify that the system updates average costs interactively.
Batch
You use the Average Cost Update program (R41811).

You specify the items, branch/plants, locations, and lots for which to update average costs.

Each time that a transaction affects the current cost of an item, the system updates the Average Cost Work file. You can specify the programs that update the workfile by using Define Average Cost, which contains UDC table (40/AV). When you run the R41811 program, the system:

Accesses current cost information from the Average Cost Work File (F41051).
Calculates the average cost for each item.
Updates the F4105 table.
Deletes transactions from the workfile.

Before you run the R41811 program, you should be familiar with the cost level of the items that you want to update. You should consider that:

For all items with a cost level of 1, you must specify ALL for the branch/plant and locations.
For all items with a cost level of 2, you specify ALL for the locations only.
If you select to run the update over items from all three cost levels, you should select by item number only.