Costing

I am trying to understand how Sage Accounts costs component parts.

As it stands I believe that the "Last Cost Price (Standard)" is used as a standard cost, when a purchase order placed, and the invoice updated, the price on the purchase order would then update the last cost price, and the next order would use that.

Items in stock are costed based on an average cost taken from the last price paid.

The problem I have is that I buy parts in various quantities and from various sources, the cost varies. If the last cost price for an item is £1.00, then I place an order for a small quantity and pay £1.50, the last cost will be updated, the next order I place will then automatically be £1.50. I have no control over when to update my standard cost price.

If I don't update the purchase order, to prevent the updating of the last cost price, the average pricing will be wrong.

There also seems to be no basic reports that actually show last cost against average cost.

In systems I have used previously part records would show, last cost, average cost and standard cost, you then decide which to use.

Am I missing something?

Thanks

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