Can anyone provide help on the MFG preference for AVERAGE COST COMPLETION UNIT COST? very little info on suiteanswers etc.

as far as we have tested, the average cost is always used when a build is completed. this means that the only way the cost would change is when the item is purchased (item receipt) or adjusted in (inventory adjustment). which seems like we could just as well use standard cost.

Thanks Peter, Yes we got to the same assumption, that Average cost setting is effectively standard cost. If have a new item with no average cost already set, work orders process at Zero value which makes little sense! Our issue is coming from Partial work order completions and the first completion GL impact is for the full value of all raw material components regardless of quantity completed, thus average cost is overinflated.

we also ran into that problem, but in our workflow we can eliminate that issue by preventing any items to be delivered to the next work order (or sales order) before the entire work order is done. this will average out the item cost. if your workflow allows for it you can partially issue material as you complete it. otherwise look at completion with backflush, that will issue material for you, but I'm uncertain if it can do partial issues.

Thank you Peter, good food for thought. Rather frustrating Netsuite doesn't handle this well - more a foundation to costing i'd have thought.

Your welcome, i have a hard time finding a scenario where average cost would apply (for completions) xD Remember that the item average cost, is the acerage cost of the items you have on hand at the given time. not in a specified time period. so if you have 0 on hand, completed 5 at cost 100 each and 5 at cost 0 the next day, you will have an average cost of 50. no matter what your previous costs was before this order.