The main reason behind this negative average cost is the backend costing engine being unable to complete its costing calculation because the period is closed.
To prevent this type issue, it’s important to ensure that costing calculations are completed before closing a period. This can be verified in two ways:
- Inventory Valuation Report – If an ongoing costing calculation is in progress, a warning message will appear under the report title, such as: “An inventory costing calculation is currently scheduled or in progress. Transactions on or after 2024-06-21 may be affected. The values on this report may be incorrect until this calculation completes”.
The issue has not been resolved yet, which is why the alert is still visible in the screenshot. Once the issue is fixed, the alert will be removed. If the costing calculation is completed, a confirmation message related to that will appear.
From the Item Record – Under the Purchasing/Inventory tab, you can check this status.
