Boatyard calculates an average cost for each part in your inventory. Because you often buy the same part at different prices over time, the average cost gives you a more accurate picture of what your parts really cost you, which leads to more accurate profit reporting.
The average cost updates automatically whenever new stock is added. You don't need to do anything to set it up.
Where to find it
Go to Parts Inventory.
Open the part you want to check.
The Average Cost is shown on the part's detail page.
The average cost is calculated by Boatyard and can't be edited.
How it's calculated
Boatyard uses a rolling average. Each time new parts are added, the cost of the new parts is blended with the cost of the parts you already have:
On-Hand Quantity includes both In Stock and Reserved parts.
New Cost is the cost per unit of the parts being added.
The average cost updates when:
A purchase order is received.
A team member manually increases the inventory count. The part's current cost is used for the added parts.
A parts import increases the inventory count. The imported cost is used for the added parts.
Using parts on jobs, or reducing the inventory count, does not change the average cost.
Example
Here's how the average cost of one part changes as parts are bought and used.
Action | Inventory Count | Average Cost |
Start with 10 parts at $10 | 10 | $10.00 |
Purchase 5 parts at $15 | 15 | $11.67 |
Use 4 parts | 11 | $11.67 |
Use 11 parts | 0 | Blank |
Purchase 3 parts at $18 | 3 | $18.00 |
After the first purchase, the average is ($10 × 10 + $15 × 5) ÷ 15 = $11.67. Using parts leaves it unchanged. Once inventory reaches zero, the average cost is cleared, so the next purchase sets a fresh average of $18.00.
Good to know
Existing parts start blank. Parts already in your inventory will show a blank average cost until you receive a purchase order for them or manually adjust their inventory count.
Zero inventory clears the average. When a part's In Stock and Reserved quantity reaches zero, the average cost goes blank until new parts are added.
Your prices don't change. The average cost is used for reporting only. Purchase orders, services and invoices continue to use the part's regular cost.