Moving Average cost on company level

Costing is done on a warehouse by warehouse basis

You are right …a single item can have multiple cost based on warehouse.

This is a good thing generally speaking as it allows different SBUs to manage item costs separately from each other if need be

Actually, it’s possible. Many standard ERPs allow you to choose the valuation area for stock at configuration time. Company level or warehouse level. Some even track two at the same time and allow you so specify a custom valuation level.

Agreed; I’ve worked on ERPs with this level of costing flexibility.

@YGhoul is right; sometimes a business does not want separate costs per Warehouse.

  • Buy coffee cups for 5 each in Warehouse B.
  • Buy coffee cups for 10 each in Warehouse B.
  • Write a sales order using either Warehouse. And expect Cost to be 7.50 always.

It’s a reasonable request.

True. In that case the valuation level to be set at configuration time is company as opposed to warehouse.

Is there such a configuration. I believe by default its set at Warehouse Level.

Unfortunately, it is only on warehouse level.
I think Moving average should be on company level by default. And the exceptional is on warehouse level.
I think this is a big problem and should be solved soon

“I think this is a big problem and should be solved soon”

Possibly this request relates to or is close to your concern?

If so upvote it with your comments, or else check here and add issue so that your request is on record.

Note several Manufacturing PRs to do with POs with this release:

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I am adding it to our stock module roadmap, it can be configurable.



Are u adding the option of “Average Cost at Company Level or Warehouse Level”


great, thanks

At setup, you should be able to choose a “organisational level for valuation”. Options should at least be Company and Warehouse with possibility to even value at the level of a custom dimension. Different types of businesses tend towards valuation at different organisational levels. Manufacturers usually at warehouse level. Retailers usually at company level. Not always clear-cut.

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Any update on this issue, please?

Although we solved this problem by modifying the core code, we still believe that the moving average should be calculated at the parent warehouse level, I hope that this option can be added in the coming version, and I am willing to assist.

Hello @nabinhait is this added in ERPNext. Thanks

can you share the changes made to make it company wise average? thanks.

You need to do modification in the core python files
And you need to review the code after every release
I dont think it is easy to share the solution because it is littile bit complicated.
I hope frappe can add the option to calculate the moving average on parent warehouse level , that will be a great think epically that most of our clients prefer this option

Good question

Anyone here who has info if the company level valuation has been added into the code already? And on what build it is available?

may i ask if in the version 14, unit cost is incorporated in the company level ? it was in the warehouse level as of now, pls update?

Unfortunately no, still on warehouse level