Closing Entry

The entry is a summary of the average cost on the last day of the average cost period.

Increase

The entry represents an inbound transaction, where the item came into inventory, such as a purchase, a positive adjustment, or an output.

Decrease

The entry represents an outbound transaction, where the item went out of inventory, such as a sale, a negative adjustment, or a consumption.

Applied Decrease

The entry is an outbound transaction where the entry was fixed applied to an inventory increase. An example of this is a purchase return fixed applied to a purchase receipt.

Revaluation

The entry contains a value that resulted from the posting of a revaluation journal, which changed the value of the item in inventory. The program adds partial revaluation costs to the average cost calculation after calculating the decreases.

Applied Increase

The entry is an inbound transaction where the entry was fixed applied to an inventory decrease. An example of this is a sales return that was fixed applied to a sales invoice.