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WS: 41: Weighted Average Cost (Doc ID 626799.1)

Last updated on AUGUST 18, 2021

Applies to:

JD Edwards World Inventory Management - Version A7.3 cume 4 and later
JD Edwards World Shop Floor Management - Version A7.3 cume 4 and later
Information in this document applies to any platform.


Weighted average cost is an inventory valuation method used to calculate the average cost of an item when different quantities of the item are purchased at different unit costs. 

The average cost system uses a weighted average calculation formula to recalculate an item's per unit average cost.  JD Edwards World software will calculate weighted average costs whether or not you are using Weighted Average as the current sales/inventory cost method.  You can further define the system choosing to have the weighted average cost recalculated automatically on-line every time a transaction is completed or you can recalculate using a batch program.  You may also select which programs will impact weighted average costs offering additional control of this cost calculation.


All users and all releases of JD Edwards World Software


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In this Document
 Cost Levels
 Calculations For Weighted Average Cost
 Recalculation vs. Changing Weighted Average Cost
 General Setup
 Setup For Weighted Average Cost On-Line
 Weighted Average Cost In Batch Mode
 Alternative Languages

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