Inventory and Warehousing · Odoo glossary
Weighted Average Cost
Weighted average cost values units using total eligible cost divided by total eligible quantity.
Definition
In general ERP practice
Weighted average cost values units using total eligible cost divided by total eligible quantity. It weights purchases by quantity, rather than taking an unweighted average of supplier prices.
In Odoo
Odoo calls the comparable costing method Average Cost (AVCO). Receipts update average unit cost from existing stock and incoming value; the result differs from FIFO layers and from the physical picking sequence.
Official Odoo documentation
The Odoo-specific explanation above is based on the documentation for Odoo 19. Features and workflows can differ in other versions.
Related glossary terms
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