Odoo 10 Implementation Cookbook

Average costing

Let's execute the business flow with Average Price as the costing method for the product internal category:

Seq.	Cost Price of Product	(Sale / Purchase)	Inventory Valuation	Cost Price of Product (after Operation)
1	60	100 quantity at the rate of 70	7,000 ((0 + 7000) / (0 + 100)) * 100	70
2	70	100 quantity at the rate of 75	14,500 ((7,000 + 7,500) / (100 + 100)) * 200	72.50
3	72.50	100 quantity at the rate of 65	21,000 ((14,500 + 6,500) / (200 + 100)) * 300	70

 

The cost price will be computed when the costing method is an average price. It will be computed each time an incoming shipment is received in the Warehouse. Cost price is based on the following formula:

cost price ...