Standard Cost vs Weighted Average Cost

[zelbur]

Hello, 

We are currently using Standard Cost. Whereas our accounting system uses Average value for inventory items, so there is often a discrepancy between inventory value between the two systems. 

Will switching to weighted average cost correct this? 

Will weighted average cost then be used on the Aggregate Inventory report in place of standard cost? 

Many thanks! 

Zeljka

[zelbur]

Thank you Miranda, sound advice! We will ensure we do a count if we decide to switch. 

[RandiThompson]

We use average weighed cost and it has had some issues along the way but they have been corrected now and it works pretty seamlessly BUT we are thinking about switching to dynamic pricing and I'm not sure it will work with that. 

[zelbur]

Thank you so much. To confirm, if our accounting (Intacct) is average value, then this should work well with ST weighted cost? 

[MirandaMel · Accepted solution]

If you change to average cost in ST, that should fix it on the report as well.  However, I have recently heard of other companies still having issues even when switching to average cost.  Before any changes, I would suggest having a very good count done and a clear value, then switch and compare.