The average cost in Finale Inventory for each of your items in inventory is calculated by the system when you purchase items on a Purchase order and receive it into stock.
You may see items in your inventory that do not have an average cost at all, or maybe the average cost is not what you expect.
The number one reason average cost may be incorrect is you received inventory on a shipment against a purchase order when the stock on hand of that item was negative.
In an effort to help explain to you how Finale Inventory would show a higher than expected average cost for an item, please see this picture.
Finale Inventory has a "shadow" accounting ledger that it must balance.
This example shows what happens to your Average cost when you Receive a Purchase Order shipment into inventory when your current QoH is Negative.
The system must balance the books at the expense of future transactions.
You can see the current value of your inventory on the Product id Details page in the section called Valuation. You can also make changes to the average cost per unit by using the Change Average cost feature. How do I change or updated the Average Cost for an item?
In the near future, you will be able to see the Average cost mistakes as Warnings on the General ledger view screen. You can filter for Average cost mistakes. You will then be able to make corrective transactions to fix the negative stock situation and or create an Average cost change journal entry.
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