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    Autonomous Management · Cost and operations

    Autonomous Moving Weighted Average Cost

    Factorbooks evaluates stock receipts and issues in the order they happen. The quantity and cost of each new receipt are combined with the stock on hand, and the weighted average cost is recalculated. Stock value, production cost and sales profit are tracked with this current cost.

    Works in every package together with the related module.

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    How it differs from other ERPs

    The same work, done two different ways.

    In other ERPs

    • Cost is often calculated in bulk at period end.
    • Stock value is set by looking at old purchase prices.
    • With FIFO, which receipt batch covers an issue can change the period profit.
    • Stock, production and sales costs are handled in separate calculations.

    In Factorbooks

    • The average cost is recalculated automatically with every stock receipt.
    • Stock is valued at the current average cost that results from the movements.
    • Cost follows stock movements and defined calculation rules, so arbitrary changes are harder.
    • The same cost figure is used in stock, production and cost of sales.

    What happens when you buy a raw material again at a new price?

    You have this raw material in stock. The new batch arrives at a different price.

    1. The receipt is recorded

      The quantity and cost of the new batch are posted as a stock receipt.

    2. The average is recalculated

      The new receipt is combined with the quantity and cost of the stock on hand. The weighted average cost updates.

    3. Stock value updates

      The inventory value now shows at the new average cost.

    4. It is used in production

      When the material is consumed in production, material and finished goods cost use the current average.

    5. Profit shows on the sale

      Cost of sales uses the same average, so product profit is tracked with current cost.

    Which work runs autonomously?

    You enter the record; Factorbooks does the work below for you.

    Current and consistent cost

    Reflects price swings
    In sectors where raw material prices change often, price changes flow into stock cost in an orderly way.
    Realistic stock valuation
    Stock is valued at the current average cost rather than old purchase prices.
    Balanced records under inflation
    Old and new purchase costs are weighed together, so cost changes can be followed more evenly.

    Control and audit

    Less room for method manipulation
    The average cost updates systematically, which lowers the risk of cost being set by personal choice.
    Control over changes after the fact
    Correct stock records, control of backdated changes and a kept audit trail support the method.
    Tax and financial reporting
    Stock cost is calculated within the accounting and financial reporting rules in force.

    Stock, production and sales together

    Material consumption in production
    Material consumed in production is costed at the current average.
    Finished goods and cost of sales
    Finished goods cost and cost of sales use the same cost figure.
    Decision support
    Sales prices, purchasing, production planning and product profit are judged on current cost.

    What it gives your business

    • Current stock costCost is recalculated with every receipt, without waiting for period end.
    • Consistent inventory valueThe financial value of inventory is tracked regularly.
    • Objective calculationCost follows rules, so arbitrary changes are harder.
    • Lower valuation riskMaterials bought in different periods at different prices are weighed with their quantities.
    • Balance under inflationPrice increases are averaged in with the existing stock.
    • Visible product profitThe link between material cost and production and sales profit becomes clear.
    • Better decisionsPricing, purchasing and production planning rest on current cost.
    • Easier auditsTraceable calculations and consistent reporting make audits easier.

    How does the average cost change?

    Change the movements. Each receipt recalculates the average cost; issues are valued at the average of that moment.

    MovementQuantityUnit price (TL)Stock quantityAverage cost (TL)Stock value (TL)

    This calculation runs on sample values. In Factorbooks it is done on its own from recorded movements and the applicable rules.

    The Factorbooks approach

    Factorbooks calculates the moving weighted average cost inside the stock movements themselves. The same cost figure is used in stock, production and sales. Stock cost, production and sales cost and product profit are all judged with one shared cost approach.

    Modules where this runs

    The autonomous process described here runs inside the catalog modules below.

    Valuation Management

    Exchange rate valuation, asset revaluation and securities valuation.

    5 features

    Frequently asked questions

    How is it different from FIFO?

    With FIFO, which receipt batch covers an issue can affect period cost and profit. With the moving weighted average, cost is set by stock movements and the calculation rules.

    Is the average cost the same as the market price?

    Not always. The method may not match the current market or replacement cost exactly. It makes sure stock cost is calculated systematically.

    Is there anything to watch for on the tax side?

    Yes. The requirements of the relevant tax rules and financial reporting standards should be taken into account when applying the method.

    Other autonomous modules

    All autonomous modules

    See it with your own data

    We will set the scope and the package together, based on your transaction volume.

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