A valuation method which uses the average purchase price of all goods delivered (received).

Also known as Average Cost method, this method of costing uses the average purchase price of all goods delivered (received). In other words, movements out are valuated against the average stock item price.

For more information, see Adding a Product > Stock valuation methods.

The average stock value = total received batch value/total number of received items (from start date defined on the product).

The total stock value = this average stock value * the number of items in stock.