[CourtneyNHS]

When calculating margins does Retail Edge use Last Cost or the Average cost?

[RetailEdge Moderator]

RetailEdge uses average cost for calculating sales margins and inventory margins. The inventory reports use the average cost for inventory valuation. When you sell an item in RetailEdge we pull the current average cost into the sales table so that this value will be used in the future regardless of changes in inventory average costs.

Last cost is really only used for the receiving and ordering process. So when you receive and update the item into your inventory, this Last Cost value can be used for future order cost calculations.

When calculating margins does Retail Edge use Last Cost or the Average cost?