Sample Cost Movements for Stock Cost Calculation Methods are as follows. Using the movements here, costing formulas will be explained.

Date | Stock Code | Unit Price | income | outcome |
---|---|---|---|---|

01.01.2009 | 153-01-001 | 1000 | 100 | 0 |

05.01.2009 | 153-01-001 | 1100 | 120 | 0 |

01.02.2009 | 153-01-001 | 1250 | 0 | 60 |

10.02.2009 | 153-01-001 | 1050 | 50 | 0 |

20.02.2009 | 153-01-001 | 1250 | 0 | 120 |

270 | 180 |

## Definitions

Stock Cost Calculation Methods: Methods used for in costing.

#### Simple Average:

Stock Cost Calculation Methods Unit price of goods receipt is calculated with arithmetic average. The amount or amount paid is not included in this calculation. Very little applicability. The simple average cost of the above 153-01-001 stock code will be 1.050.00 TL.

**FİFO (First In First Out):**The method of calculation in the first-in-the-first application depends on the quantity of goods in the inventory inventory. In the table above, our inventory inventory is 90. All of our last purchase (10.02.2009) and 40 of our last purchase (05.01.2009) are in stock. The unit price of the remaining 40 units (£ 1,100.00) is multiplied by 40 units. Our last purchase is multiplied by 50 unit price (1,050,00 TL). The sum of these multiplications will be divided into total inventory and the figure will be FIFO cost of TL 1,072.22.

**LİFO(Last In First Out):**The amount of inventory is important in the first entry and first application. If the current inventory is smaller than the initial purchase, the unit price of the first purchase is directly the LIFO cost. If the current inventory is larger than the first purchase, the unit price of the next purchase is also included in the calculation. In the example above, the direct cost of LITHO is 1,000.00TL, since 90 inventories are smaller than the initial purchase. Assuming that our inventory is 120 in understanding the calculation; 100 of our inventory will be multiplied by the unit price of our first purchase, the remaining 20 will be multiplied by our second purchase unit price, and these two products will be added to the inventory to calculate the cost of LIVO. If there are 120 stocks in our inventory,

#### Weight Average Cost:

The unit prices of the purchases are multiplied by the amount received and the purchase amounts are added. The weighted average is calculated by dividing the purchase amount and the amount received. According to the table above; The weighted average cost is 1.053.00 TL.

#### Final Purchase Cost:

The unit price calculated by deducting the final purchase discounts is the final purchase cost. If our 5% discount is applied to our last purchase, our unit cost will be 997.50 TL, but in the example above, our last purchase cost is 1.050.00 TL since no discount is applied.

#### Last Sale Price:

The final purchase price is the purchase price without deducting the final purchase discounts. If a 5% discount is applied to our last purchase, the unit will calculate our cost without calculating this discount. According to the above example, our final purchase cost is 1.050.00 TL.

#### Moving Weighted Average Cost:

On the moving weighted average, it is included in the cost calculation not only in goods purchases but also in sales of goods. According to the above example; With the purchase dated 01.01.2009, 1000 TL 100 inventory cost is entered into our inventory. The cost of our inventory is 100.000,00 TL. Unit cost will be 1.000,00 TL when stock value is divided by stock value. Our inventory cost will be multiplied by 2 purchases and unit price and added to the final inventory cost amount. When 132.000.00 TL is added to 100.000.00 TL to the inventory cost amount before the purchase is realized, the new inventory cost amount is 232.000.00 TL. When the new stock cost amount is divided by the new stock amount, we will have 1.054.55 TL Weighted walking cost.

Reduction of inventories is calculated as the cost of inventories is reduced. The output amount is calculated as YAO Multiplied by cost and subtracted from the previous cost value. Previously, an inventory value of 232,000.00 TL was reduced to 60 168 TL with a decrease of 60 X 1,054.55 = 63.272.73 TL.

This amount is again divided by YAO inventory amount, cost is 1,054.55 TL. Reducing the sales transaction inventory does not change the YAO Cost, but the cost of the inventory used to calculate the YAO Cost change varies because it needs to be calculated. Continuing to calculate with this formulation, the Moving Weighted Average Cost will be 1.053.46TL. The stock value of 232.000.00TL has been reduced to 60 168 TL with a decrease of 60 X 1,054.55 = 63.272.73 TL. This amount is again divided by YAO inventory amount, cost is 1,054.55 TL. Reducing the sales transaction inventory does not change the YAO Cost, but the cost of the inventory used to calculate the YAO Cost change varies because it needs to be calculated. Continue to calculate with this formulation,

## Rules

Rules to be followed in the calculation of cost;

- Negative stock cost is not calculated.
- Cost calculations of finished and semi-finished stocks are calculated in production recipe. However, if semi-finished products come with external procurement, production receipts and procurement documents must be processed and costed.

## Implementation

- A filter must be used in the cost application. With this filter, inventories should be calculated according to the need groups or the cost of a single inventory. The user can use different cost calculation method for certain group products. Y.A.O may want to use the cost of non-life goods such as cement and brick.
- The calculated cost and cost method should be visible on the stock cards.
- Costing is a manually running application and it must be parameterized automatically. When the Purchase Procurement document is processed, the cost calculation of the items of the document should be calculated according to the costing method of this stock and the cost fields of the relevant cards should be updated automatically and the cost should be calculated automatically.