Costing Methods
Below is a summary of the QAD Enterprise Applications costing methods. Each method is described in more detail on the pages that follow this summary.
Standard
Costs are pre-established and all transactions valued at that cost. Deviations between base settings and actuals transacted are reported as variances.
Average
Costs are recalculated as they occur. The costs associated with a transaction are weighted with the existing costs to provide a new average cost. The average cost can be used for valuation as a GL cost for information only as a current cost.
Period
This costing method omits the valuation of inventory type transactions and uses the values of the incoming GL transaction from Accounts Payable functions, along with changes to inventory balances between accounting periods. This can be set in Inventory Accounting Control (36.9.2).
