From another thread:
"The number used for the Total Assets is the Avg Cost field times the Qty field on all the products. Check those fields."
Having learned this I checked one product that I sell... propane. My most recent purchase was of 640ga at $2.88/ga. while the previous delivery was of 475ga at $2.74/ga. Present inventory was reported as 858ga with a cost of $2.88/ga and an average cost of $2.49/ga.
Adhering to a "first in, first out" stock rotation policy (as is necessary with other, perishable items) my present inventory, 858ga, is 640ga at a cost of $2.88/ga and 218ga at $2.74/ga for a true "average cost" of $2.84/ga. As 858ga is $2,436.72 at $2.84/ga and $2,136.42 at $2.49/ga it appears that my present inventory is being undervalued by $300.30.
Furthermore, whenever depleted stock is replaced it is immediately devalued unless the cost has not risen, resulting in an ever-increasing de-valuation unless the "average cost" is consistently reset.
I would prefer that the value of my stock was related to the most cost and not the average of what I have paid over the last few years.
"The Avg Cost can be set the Cost using the Tools / Set Avg Cost to Cost function."
Apparently, I shall be doing this often.
