Weighted-average cost combines the known value of inventory inputs with the current valued quantity; ordinary outputs remove value at the current average without relying on an editable current-cost field.

The short answer

This distinction changes the decision you can safely make.

KnownStock calculates quantity and value from confirmed inventory and value changes. Transfers and physical-state changes preserve value. An unknown input cost makes current value and average incomplete rather than zero. Operational cost does not create accounting entries.

Worked example

Use exact units and keep each quantity in the right category.

Inventory starts with 10 pieces valued at 50 €, or 5 € each. A receipt adds 10 pieces valued at 100 €, or 10 € each. The new quantity is 20, total value 150 € and weighted average 7.50 €. A later ordinary output of 4 removes 30 € and leaves 16 pieces valued at 120 €.

Decision table

Check the facts before choosing an action.

Common mistakes

Avoid shortcuts that create confusion later.

• Storing a separate current-cost value that can drift
• Using floating-point arithmetic
• Treating unknown cost as zero
• Calling operational valuation a general ledger or statutory accounting result

How KnownStock handles it

The product keeps the explanation with the number.

KnownStock uses exact decimal arithmetic and a fixed order for confirmed value changes. Reports hide cost without permission and mark incomplete or provisional valuations clearly.