Weighted Average Cost

Weighted Average Cost

WAC overview


WAC or weighted average cost is a method to value your stock based on purchase orders prices and receptions.
Connect calculates the WAC at 2 levels : 
  1. At the warehouse level : calculated based on PO receptions
  2. At the product level : calculated based on the average WAC of warehouses

The table below explains the calculation for WAC at warehouse level, based on purchase order receptions and stock updates.




The cost extracted from the purchase orders includes : 
  1. Product buying price
  2. Product discount
  3. Landing fees (shipping fees)
Warning : if you create a purchase order and ignore the buying price (ie : buying price = 0), wac calculation will consider a buying of 0 !


WAC must be re-calculated when : 
  1. Physical stock level changes
  2. Purchase order information changes

For performance reasons, WAC is not automatically updated during these events BUT is flagged in Connect as "To update".
This is the Update wac feed that will update the value.

Configuration

To enable WAC calculation in Connect, you must

      1. Enable WAC at warehouse Level

Go in the warehouse view, select tab "Main" and enable WAC calculation : 




      2. Create Cron integration

If you dont have a "Cron" integration, create it : 
  1. Go in menu integrations > Integration
  2. Click on button "New integration"
  3. Create new integration with the following details : 
    1. Title : Cron
    2. Enabled: enabled
    3. Type : Cron
    4. Then save






      3. Schedule "Update WAC" feed


In the cron integration, select tab "Feeds" and schedule "Update WAC feed" every hours : 





See WAC value


The wac is visible in the warehouse view, in the "Products tab" : 



Note : if you see the WAC in red, it means that it is not yet updated, it will be updated during the next "Update WAC" feed execution.

The WAC value is also updated at the product level, in the "Cost" column : 




Export

if you need to export your stock value includnig the WAC, you can do it from the Warehouse view, in tab "products" : use the export option above the grid : 




Miscellaneous


Some CMS integration may overwrite the product cost : if you want to keep this information updated by the WAC calculation, make sure to disable the cost update from CMS integration.



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