In Average Cost, Will System Consider the Item Cost, if Quantity Is Zero for New Receipts

(Doc ID 2166515.1)

Last updated on MARCH 08, 2017

Applies to:

Oracle Cost Management - Version 12.1.3 and later
Information in this document applies to any platform.

Goal

Please provide the calculation for the average cost,  if on-hand quantity of item is zero while taking new receipts.

Could you please explain with example:
1. Average cost calculation for an item with on-hand quantity as zero and new receipts
2. Average cost calculation for an item with some on-hand quantity and new receipts
 

Solution

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