How To Change Average Cost In Netsuite

—

by

Vector Linux
in

Modifying the average cost in NetSuite can prove to be a daunting task for some users. Nevertheless, by following a few tips and familiarizing oneself with the platform, it can be executed seamlessly. In this piece, I will share my personal encounter and offer detailed guidance on how to adjust the average cost in NetSuite.

Understanding Average Cost in NetSuite

Before we dive into the process of changing the average cost, let’s take a moment to understand what average cost means in NetSuite. In NetSuite, the average cost is the total cost of an item divided by the quantity on hand. It is an essential metric for inventory management and helps businesses calculate the cost of goods sold accurately. By adjusting the average cost, you can ensure that your inventory valuation is up to date and reflects the most accurate costs.

Step-by-Step Guide to Changing Average Cost

Now that we have a clear understanding of average cost, let’s proceed with the step-by-step guide on how to change it in NetSuite:

  1. Login to your NetSuite account and navigate to the “Items” tab.
  2. Search for the item whose average cost you want to change and open its record.
  3. In the item record, locate the “Inventory” tab and click on it.
  4. Scroll down to the “Purchasing Information” section and find the “Average Cost” field.
  5. Click on the “Edit” button next to the “Average Cost” field.
  6. Enter the new average cost value in the provided field and click “Save”.
  7. After saving, NetSuite will recalculate the average cost and update it for the item.

It’s important to note that changing the average cost in NetSuite will not automatically update the cost of previously received inventory. If you need to adjust the average cost for past transactions, you will need to make the necessary adjustments manually.

Conclusion

In conclusion, changing the average cost in NetSuite is a straightforward process that can be easily accomplished by following the steps mentioned above. By keeping your average cost up to date, you can ensure accurate inventory valuation and make informed business decisions. If you encounter any difficulties or have further questions, I encourage you to reach out to NetSuite support for assistance.