Set a new average purchase price when a bill is received
Note: this will ony update the Purchase price on the items in inventory, not the items already added to jobs, Quotes, Invoices Purchase Orders and bills.
Also, If the purchase price is 0 in inventory the purchase price will be set to the price on the bill rather than an average
Receive the items to stock from the Purchase Order as usual
When the Bill arrives with the new purchase price, click the Update purchase price button to calculate and set an average purchase price for the items currently in stock.
Confirm in the popup
Then click ok in the popup to update the purchase price for all items on the bill
How the Average purchase price calculated
The Average purchase price is calculated by adding up the total value of stock and then dividing that by the quantity in stock. This calculation use the current stock quantity to calculate the current stock value and the quantity and purchase price on the bill to calculate the new purchase price.
Let's say you have 10 clips in stock with a purchase price of $10.00. This means the total value of this stock is 10 x $10 = $100. Then you purchase anther 10 clips, this time for $12.00 each, this stoic is valued at 10 x $12 = 120. Your inventory now looks like this:
Total Quantity of clips: 20
Total Value of clips: (10x $10) + (10x $12) = $220.00
Average Purchase price: $220.00÷20 = $11.00