Inventory costing method 1: average costing

For the Average Costing method, inventory adjustments accumulate for manual review by a cost accountant before posting records to the matching tables. This allows cost accountants to adjust cost at the aggregate item level and cancel out adjustments.

The Sterling™ Order Management System Average Costing functionality includes:

• Defining inventory costs within Sterling Order Management System
• Capturing relevant costs during purchase order execution and sales execution
• Ensuring that the correct and most current costs are passed from Sterling Order Management System to a target financial (A/P, A/R and G/L) application
• The ability to view the current monetary value of inventory within Sterling Order Management System at any point in time