Weighted Average Cost
When any inventory quantity is received into stock, the system calculates the new inventory cost by using the [(current inventory qty on hand * current inventory cost) + (new inventory being received * receipt cost)]/ Total NEW on hand quantity.
The weighted average cost is automatically re-calculated every time you receive inventory into Pilot through an adjustment, PO Receipt or WO Receipt.
To prevent users from accidentally changing the average cost on an item, there is a “read only” check box in the upper right hand corner of the item card. If you need to manually adjust the weighted average cost of an item, by unchecking that setting, you can change the Wgt. Avg. Cost and then saving. The read only check box is automatically re-checked when the item is saved. If the item is assigned to use weighted average cost in the item type, Pilot will automatically create a transaction in the item history to record the change in cost.
The weighted average cost is an accurate per unit value of an item currently on hand. When you purchase or manufacture an item, the receipt updates the current average cost of the units you have on hand. If you do NOT have any units on hand when you purchase or manufacture an item, then the new average cost of that unit WILL be the actual cost from that PO or job.
New Weighted Avg. Cost = (Current Qty on Hand * Current Avg. Cost) + (New Receipt Qty * Receipt Unit Cost)
(Total New Qty On Hand)