The Purchase History screen provides a summary of all purchase transactions for the inventory item selected. The purchase history is automatically entered into this summary screen via the activities done in the Purchase Order section of the Inventory module.
Average Cost of Purchase History: automatically displays the average cost for the items based on all entries in the history grid.
There are 3 calculation methods:
1) Average for period
2) FIFO
3) LIFO
Calculate Average Cost for period: provides a method for the user to define the time period for which they want the Average Cost to be calculated upon. This option is useful when one wants to remove, from the calculations, past purchases which may affect the analysis desired. To calculate the Average Cost for the item for a period, select the Start and End date for the calculation and then click on the Calculate Average Cost for Period button.
FIFO: First In First Out : The average cost calculated is correct for both perpetual and periodic cost averages using FIFO.
LIFO : Last In First Out : The average cost is calculated based on the periodic LIFO method versus the perpetual LIFO method. Consult your accountant to determine if this costing method is appropriate for your business.
Print Button: allows for the printing of a Purchase History report.
