When creating a purchase order, you are able to update the cost of an item. This cost may be different than the cost of similar items already recorded in your Clover inventory.
Track cost average will update the recorded Clover item's cost to the weighted average between the existing cost of those items currently in inventory and the newly updated cost of your incoming items.
To allow or prevent cost averaging, navigate to the Settings tab in the Top Up menu bar. You will see an option to turn on or off Track cost average.
Say there are 3 "Red Shirts" in inventory at my desired location. Their current unit cost is $1.00.
I now add 10 "Red Shirts" to a purchase order for this location, and the cost from my vendor has changed to $2.00.
When I receive this purchase order, the new cost for that item in Clover inventory will be recorded as $1.77, the weighted average cost of both the existing and the new items.