You want to know whether the valuation method Moving Average is similar to the Weighted Average method.
Reproducing the Issue
- Go to Inventory Valuation work center.
- Go to Master Data view.
- Go to Materials subview.
- Edit the material ID you want.
- Go to Valuation tab.
- You will see in Perpetual Cost Method only Standard and Moving Average.
The Weighted Average and Moving Average are both valid average cost methods.
But ByD just offer two types of Perpetual Cost Method: Standard and Moving Average.
- Weighted Average cost method determines an average cost by adding beginning inventory and all purchases. With this average cost, all cost of goods sold and ending inventory is valuated in the same way.
- Moving average is usually used by perpetual inventory systems, such as SAP Business ByDesign or SAP ERP.
Here an average cost is calculated after each single business transaction. This could lead to different cost of goods sold within an accounting period. But the advantage is
that the unit costs are reflecting more quickly.
Both are not the same type, and in SAP Business ByDesign or SAP ERP the used one is Moving Average.
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