Weighted average date is an inventory model based on the weighted average principle, where issues from inventory are valued at the average value of the items that are received into inventory for each separate day in the inventory closing period.

When you run an inventory closing with weighted average date, all receipts for a day are settled against a virtual issue, which holds the total received quantity and value for that day. This virtual issue has a corresponding virtual receipt from which the issues will be settled. In this way, all issues get the same average cost. The virtual issue and receipt can be seen as a virtual transfer, called the "weighted average inventory closing transfer".

If only one receipt has occurred on or before the date, it is not necessary to value the average because all issues are settled from it and the virtual transfer will not be created. Likewise, if only issues occur on the date, there are no receipts from which to value the average, and the virtual transfer will not be created in this case either.

When using weighted average date, you can choose to mark inventory transactions so that a specific item receipt is settled against a specific issue, instead of using the weighted average date rule.

We recommend a monthly inventory closing when you use the weighted average date inventory model.

For more information including examples of the Weighted average date inventory model, see About weighted average date.