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Irrespective of which of these methods is used, all 3 unit cost rates are always maintained and calculated for each item / location. These 3 rates are shown on the Location subgrid of the Stock List, with the operative costing method indicated.
At the end of each period (month), a stock closeout process is performed which takes a snapshot of the stock position for each stock item / location. This includes the current Standard, Last and Average Unit Cost Rates, the Quantity of Stock of Hand, and the calculated Stock Value.
When a stock transaction (generally a stock issue) is entered, the prevailing Unit Cost Rate is used to cost the transaction. This determines the cost which will be applied to the job which the stock item is being issued to. If the Unit Cost Rate changes during the period, perhaps because a stock receipt has been recorded at a new purchase cost, then different stock issues may have different Unit Cost Rates for the same stock item. The standard wbRepriceTransactions may be used set the Unit Cost Rate on stock issues in the period to the current cost rate, as long as they haven’t been exported of course.
A wbUpdateAllStockCosts utility is available. It recalculates and repopulates the Last and Average Cost Rates on all stock items and locations. It should not need to be used in normal circumstances as these rates are updated in real time as transactions are entered.