Walk me through average cost calculation of an assembly item created by wip work order completion

AI generated answer (using internal Slack threads):

The average cost calculation of an assembly item created by WIP (Work in Progress) work order completion in NetSuite is a multi-step process. Here's a step-by-step walkthrough: 1. Component Costing: The cost of the components used in the assembly item is determined based on the purchase order/item receipts records. This cost is typically pulled from the 'cost' field of the item file. If you have multiple vendors with different prices for the same component, NetSuite uses the average cost. For example, if you have a part for $1 from one vendor and $2 from another vendor, and you buy 500 from each vendor, when you build the assembly, it will use $1.5 in the GL for cost. 2. Assembly Build: The Assembly Build transaction pulls in the cost information from the item file and has a GL impact. This is where the cost of the assembly item is calculated based on the cost of its components. 3. Costing Method: The costing method set on the assembly item also influences the cost calculation. If you have 'average costing' set, the system will calculate the average cost of the components to determine the cost of the assembly item. 4. WIP and Routing: If you're using WIP and Routing, the 'Average Cost Completion Unit Cost' options can also influence the cost calculation. You can choose between 'Average Cost' and 'Open WIP Amount' as the cost basis. 5. Cost on Sale: When the assembly item is sold, the total cost is typically reflected on the Item Fulfillment transaction for COGS (Cost of Goods Sold). Remember, you can customize how this works in different ways. For instance, you can set an actual cost incurred for assembly builds. This is a feature you have to enable in NetSuite. ****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ******