In 2022, Katana released MAC 2.0 — an improved Moving Average Cost calculation method — to ensure more accurate and consistent inventory and financial records.
Effective date: January 1, 2022
Pre-2022 transactions: Not recalculated to avoid altering historical data
Purpose: Ensure that cost changes flow through all related transactions without impacting past closed data
What’s new with MAC 2.0
The updated cost calculation:
Saves the MAC for each variant as of Dec 31, 2021 as the starting point.
Recalculates all post-Jan 1, 2022 transactions when a cost-affecting change occurs.
Updates all related documents if a changed MAC is used as an input for another variant.
Examples of recalculation:
A new Purchase Order (PO) for a material affects the Manufacturing Order (MO) that used it.
If the product from that MO was already sold, the Sales Order’s COGS will also update.
Viewing transactions in Inventory Intel
All stock-affecting transactions and their MAC are visible in Inventory Intel:
Open a variant’s Average cost or Stock balance, or
Click the i-icon in stock balance fields on documents.
System generated row:
Added at the start of 2022 for all variants and locations.
Stores the stock balance, value in stock, and MAC as of Dec 31, 2021.
Serves as the starting point for all future MAC calculations.
Rows before this date are not recalculated.
Changing the Moving Average Cost (MAC)
Option 1 – Manual stock adjustment
Create a Stock Adjustment with two rows for the variant:
Row 1: Negative quantity to bring stock to zero.
Row 2: Positive quantity with the new Cost per unit.
The MAC is updated for the re-added stock.
Option 2 – Update via spreadsheet import
Go to Settings > Data Import.
Export Update stock levels and stock values.
Edit the file: Update the Value in stock field to match the new unit price.
Re-import the file and select Recalculate Moving Average Cost in Katana for any stock increases.
Katana will create a Stock Adjustment with:
Row 1 = Negative quantity to zero stock.
Row 2 = Restored stock with updated value.
Inventory period closing
Released alongside MAC 2.0 to prevent unwanted recalculations in past periods.
Once a period is closed, you cannot change stock-affecting documents in that period.
Result: With MAC 2.0, cost changes flow through all connected transactions from Jan 1, 2022 onwards, ensuring accurate and consistent inventory valuations.
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