Intransit Quantity is not included in the Perpetual average cost algorithm
Intransit Quantity is not included in the Perpetual average cost algorithm.
In case there is intransit quantity that has to be received into the destination inventory organizzation, this is not used in the calculation of the new average cost in case a new PO receipt occurs.
As intransit quantity is owened by the Company, then it has to be considered in the calculation of the new average cost.
If it is not, the unit average cost is not compliant with statutory requirement based on which all owned stock has to be revaluated by the new cost owned transaction which occurs.