I am a bit confused about Pastel Evolution's inventory costing methods.
So according to Pastel Evolution you can select on of the following three default costing methods (copied from their documentation):
Weighted Average This is the usual method. The system calculates the cost of each item as the average cost of all inward movements of this item. These are usually purchases. Latest Cost With this method, the cost of the last inward movement of the item becomes the cost of this item. Manual Cost This lets you specify a fixed cost for inventory items, which does not change as you purchase more inventory.
Weighted Average cost is an accepted costing method according to IFRS and IFRS for SMEs.
Manual cost sounds like it is intended to be used like a standard costing system, which is an accepted costing method according to IFRS and IFRS for SMEs, if it approximates actual cost.
But Latest Cost doesn't seem to be consistent with IFRS or IFRS for SMEs.
Am I misunderstanding how Latest Cost is implemented?
Is it consistent with IFRS?