Clarification on the possibility of modifying the product average cost during inventory audit and the mechanism for calculating the inventory average cost during the audit, whether when decreasing or increasing the quantity
When decreasing the quantity:
- Unit cost is calculated automatically based on the average cost recorded in the system.
- The average cost cannot be modified because the decrease is done according to the product’s previous cost, which preserves the accuracy of accounting records.
- For example, if the decrease is due to sales, damage, or inventory adjustment, the inventory is reduced by the previously recorded cost.
When increasing the quantity:
- When adding new quantities at a different cost, the system allows automatic updating of the average cost to be calculated according to the new purchase price.
- New quantities are combined with the current inventory to calculate a new average cost based on the total quantity and its value.
Additional notes:
- The average cost is only modified when entering new purchases, opening balances, or inventory audits at a different price.
- Manual adjustments to the average cost are not available to maintain accounting accuracy.
