User
Explain how a purchase order impacts inventory?
Rosetta AI
When a purchase order is created, the system checks the inventory levels for the
items in the order.
If the items are in stock, the inventory is reduced accordingly. If not, the system
may trigger a backorder process or
notify the procurement team to restock.
Citation: Inventory Management Module, Section 3.1
User
How is average cost calculated for inventory items?
Rosetta AI
Average cost is calculated by taking the total cost of all inventory purchases and
dividing it by the total number of units purchased. Citation: Inventory Management
Module, Section 4.2.
