For each inventory item, a total inventory value must be set from which average unit cost should be calculated. This is only available if Batch Costing is enabled and is critical for making batch costs generate in your system
- Navigate to Inventory - Overview
- Find the inventory item needing a value (all raw materials, all supplies)
- Click the blue arrow to the right of the item, then the pencil icon to Edit Item
- Toward the bottom of the form, check the box to Adjust Total Inventory Value
- Enter the value of the inventory, or click the blue total cost based on the item supplier
- Save the new value
This has to be done for each inventory item in order to begin calculating a batch cost, but need only be done once.
Once this value is initially set, average unit costs will continue to calculate based off of Purchase Order receipts.