Average Cost For Item with Negative or Zero Current Balance

Technote (FAQ)


Question

If inventory is received for an item with negative or zero current balance, is there a reason that the Average Cost of the item does not update?

Cause

This rule was added many releases ago. The previous code used to simply

adjust the average unit cost even if the balance on hand was zero or
negative.


Answer

This previous behavior was incorrect because when the balance is zero or

negative there is NO quantity on hand to absorb the cost change and it

abnormally skews the average cost. The current rule is correct, it

checks for a condition where the current balance is zero or negative and

if so, does not apply further average cost changes.


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Document information


More support for:

IBM Maximo Asset Management
Inventory

Software version:

6.2.1, 6.2.2, 6.2.3, 6.2.4, 6.2.5, 6.2.6, 6.2.7, 6.2.8, 7.1, 7.1.1, 7.5

Operating system(s):

AIX, HP-UX, Linux, Solaris, Windows

Reference #:

1505543

Modified date:

2013-06-12

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