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What is MAC and how is it calculated?
What is MAC and how is it calculated?
MAC (Moving Average Cost) Calculation
Brahm Meka avatar
Written by Brahm Meka
Updated over a week ago

The Moving Average Cost (MAC) is how Brahmin Solutions figures out the cost of a product at any point after it has been [purchased - received] or [adjusted - add or remove] or [sold - shipped].

The MAC is calculated by taking the MAC before the purchase and the unit cost of the purchase and then taking an average of them. The same method of calculation applies for stock adjustments.

For stock adjustments, the MAC only changes when the cost of the stock adjustment add or deducts from the current MAC, thus altering it.

The MAC is calculated based on base currency. Therefore, when you have a Purchase Order in a different currency, Brahmin Solutions will convert it to the base currency and calculate it for you.

Here is a more visual example of how mac changes over time of purchasing

Note: MAC only changes when you purchase or add inventory via adjustment but not after an inventory sale or remove inventory via adjustment. 

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