One of the basic parameters you need to set if you want to use periodic weighted average (periodic WA) is invoice consideration in the Inventory Part/Cost Control section. If you select Periodic Weighted Average in the list for a site, periodic WA will be used by default for all new inventory parts that are entered on that site. If you decide not to use that setting, you have the option to use periodic WA for a specific part by performing the procedure described below.
The Max Periodic WA Update field allows you to limit the percentage with which the cost is to be updated during a periodic WA calculation. If you have few parts in stock and few inventory transactions you might want to consider to use this functionality to reduce the impact on the cost change of high cumulative differences.
Inventory parts will use periodic weighted average. Information is entered that limits the effects of a periodic WA update.