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How is the Average Cost Price calculated in EMERGE?

When the cost reflects the reality of the user's business model, where products are often produced rather than purchased from suppliers.

Gigi Nguyen avatar
Written by Gigi Nguyen
Updated over a year ago

The Average Cost Price (ACP) is a method of determining the cost of inventory based on a weighted average of purchase prices or production costs.

  • Currently: If the product has been purchased before but the stock level is less than or equal to zero (stock ≤ 0), it will use the last purchase price.

  • But: Some businesses make their own products instead of just buying them from suppliers. When stock runs out(stock ≤ 0), it's important to consider the cost of making the product, not just the cost of buying it.

  • Update: If the stock level is less than or equal to zero (stock ≤ 0), the system will determine the cost based on the last purchase price or production order cost. Now, the system will first check the last purchase price, and if that’s not available(this product is produced not purchased), it will use the production order cost.

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