This topic is intended to instruct you on the ways GlasPac�LX determines inventory costs. There are five ways that GlasPacLX costs IC items: Standard Costing, WMA Costing, Specific Costing, Vendor Costing, and Default Costing. They are displayed in the Costing Configuration window in a way that shows their hierarchy in descending order; the costing methods higher up in the list will override any of the other conflicting costing methods below it.
I. Standard Costing�You set the cost of products and maintain a cost list in the system. This is an optional costing method, but when used, it overrides both WMA and the Default costing methods. Click here for details on setting up standard costs.
II. Weighted Moving Average (WMA) or Specific Costing
a. Weighted Moving Average (WMA)�This is the average cost of all items that have been received into inventory, using the following formula:
(Current Avg. Cost x Previous Quantity) + (New Cost x New Quantity) = Total Cost
Total Cost / (Previous Quantity + New Quantity) = New Avg. Cost
For example, say that an item's current average cost is $50 and that you have 40 on hand. Now you receive in a shipment of 100 @ $52 each. The calculation of the new average cost is:
[(50 x 40) + (52 x 100)] / (40 + 100) =  / 140 = $51.43
Note: WMA is only recalculated when a receipt is entered. If a product has been entered into IC, this costing method takes precedence over Default costing.
b. Specific Costing
Specific Costing overrides vendor and default costing. Cost is based on the actual cost of individual IC items as they are receipted into inventory, enabling each part in the system to be uniquely identified by part number, trademark, and date for tracking. The date of receipt impacts which part GlasPacLX will choose for sourcing, based on your decision on whether to pick the oldest or newest available item first. Note that because date of receipt is recorded, specific costing cannot be used concurrently with WMA costing.
III. Vendor Costing
Vendor Costing overrides default costing. This costing method lets you maintain a cost list of items that you typically purchase from specific vendors in the �Vendor Maintenance � window.
IV. Default (NAGS list price) less the Cost Discount for the same product�Uses the NAGS list price by default if no other costs have been established. Then, if a discount has been set up for Cost Discounts, it will subtract it from the NAGS list price.
Note: If no Standard Costs have been set up and the product in question has not been entered into IC for WMA costing, then the Default method of costing will be used. Click here for details on setting up costing defaults.