The system uses the weighted average to value stock. This is updated whenever a delivery is approved and when the stock period is closed. It is a rolling weighted average which means it will change each stock period if the delivery value or cost price is changed. When a product is initially added to a site its weighted average value is the cost of the designated supplier of that product on that site. This value also drives the theoretical cost for the products contained within the recipes.
There are two weighted averages ‘Weighted Average Start’ & ‘Weighted Average End’. The Weighted Average Start is the value of the opening stock for that period, which was last periods closing value. The Weighted Average End is the value of the closing stock for that period. They are calculated as follows:
Period 1 Open Del Closing Period 2 Open Del Closing
QTY 1 1 1 QTY 1 1 1
VALUE £10 £11 £10.50 VALUE £10.50 £11 £10.75