how is average cost on an assembly item calculated?

AI generated answer (using internal Slack threads):

The average cost of an assembly item in NetSuite is calculated based on the costs of the components that make up the assembly item. This includes the costs of all the materials and labor involved in the assembly process. When an assembly item is built, NetSuite pulls the cost from the underlying inventory items that make up the assembly. This cost is typically tied to the purchase order/item receipts records. The cost used in the General Ledger (GL) when an assembly build is made is usually the average cost field on the component. For example, if you have an assembly item that is made up of two parts, one costing $1 from one vendor and another costing $2 from another vendor, and you buy 500 of each part, when you build the assembly, NetSuite will use $1.5 in the GL for cost. This is because it averages the cost of the components ($1 and $2) to calculate the cost of the assembly item. If there are discrepancies in the cost, such as being charged more for labor than was actually incurred, you can update the orders if they are in the open period and change the cost. If the period is closed, you can do an inventory adjustment to correct the cost. It's also worth noting that NetSuite allows for customization of how this works. There are features that you can enable to set an actual cost incurred for assembly builds. More information on this can be found in the NetSuite Help Center. ****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ******