Incorrect Part Cost

[FixitRightAuto]

So there's been an oops done in our software. We order filter "master packs" and I have to receive them differently to not throw off my profit cost. Well, they got received at full price, so now we are selling filters that cost $2 a piece and our profit margin is off, showing we are selling those filters and paying $25 each...

I've fixed the price in the inventory, but now it's still popping up "average cost" at well over what we are selling at. Is there a way to fix this to where my profit numbers aren't screwed up?

[timbre4]

Yes, make a note of your current QOH. Then edit that inventory record QOH down to ZERO. In Reason for Manual Quantity Update you could type 'Fix Avg Cost' or similar. That feeds an inventory adjustment report. Click OK to save the 0 QOH. Then click Edit again, and change the QOH back up to what you noted before. Click OK to save that; repeat your adjustment note or leave blank. OK to that.

Taking the QOH down to zero breaks the chain and forces the Average Cost to start a fresh calculation from this point.

[FixitRightAuto]

Thanks a bunch!

So turns out this also happened to a few things that I don't stock order through Mitchell. What would cause those numbers to be skewed like that? Would manually adjusting the physical count cause that?

[timbre4]

Average cost initially is same as Last Cost; as the part is received at different cost figures, Average Cost starts to move away from the initial Last Cost figure. If the items in question are an unusual package quantity (cost per carton of 12 but sold as 12 units instead of 1 box order quantity) or the COST received is changed that could change. The only change QOH can do is a reset when you take it down to zero.