Below is the method of calculating the Average Pricing in OpenERP
Formula
NP = (AP * QS + PP * QP) / (QS + QP)
Example: NP = [AP(13.42)*QS(733)+PP(15)*QP(10)] / [QS(733)+QP(10)]
NP = 13.44
Abbreviations:
- NP (New Price): New Average Price once product have been received in the warehouse.
- AP (Average Price): Old Average Price before product received in the warehouse.
- QS (Quantity Stock): Quantity stock before product received in the warehouse.
- PP (Purchased Price): Purchase Price(Unit Price) in Purchase order.
- QP (Quantity Purchased): New Quantity received in Purchase order.
