This recipe demonstrates how you can update the average cost by using an interactive application and batch application Average Cost Update (R41811).
Before you run the Average Cost Update program, you should be familiar with the cost level of the items that you want to update. You should consider that:
When you run the Average Cost Update program, the system accesses current cost information from the F41051 Average Cost Work file table. It then calculates the average cost for each item and updates the F4105 table. Each time a transaction affects the current cost of an item, the system updates the Average Cost Work File, and then deletes the transaction work file. To specify that the system updates Average Costs interactively, use the System Constants program. To update average costs in batch mode, use the Average Cost Update program. You specify the items, branches/plants, locations, and lots for which to update average costs.
You can update item costs through an interactive process. Set up the Update Average Cost Online option in the branch plant system constants. The system then calculates a new average cost for an item immediately after any transaction occurs that affects the average cost of the item.