Average Cost in Advanced Stock Valuation

When you use the average cost method in JD Edwards EnterpriseOne Advanced Stock Valuation, timing is not an issue. The system first calculates the average cost for all incoming receipts, without considering when the outgoing transaction occurred. Incoming transactions are the true value of the stock; they indicate what you paid for the items.

To calculate the true cost of goods sold, the system calculates all incoming transactions and bases the outgoing values on that amount.