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Each time you receive, transfer, or adjust a part's quantity-on-hand upward at an inventory location, or a fuel quantity-on-hand upward in a fuel tank, a new average price is computed for that location or fuel tank, and that price is used when there are subsequent issues, transfers out, and adjustments of the quantity on hand.

Each time you adjust a part's quantity-on-hand at a location, the current unit price is recalculated. This minimizes the possibility of a small value-on-hand remaining when the quantity-on-hand is zero. To perform this calculation, the value-on-hand is divided by the quantity-on-hand.