diff --git a/addons/product/product.py b/addons/product/product.py
index bc91ff2a949..ff4a380c5c0 100644
--- a/addons/product/product.py
+++ b/addons/product/product.py
@@ -178,10 +178,10 @@ class product_template(osv.osv):
 		'rental': fields.boolean('Rentable product'),
 		'categ_id': fields.many2one('product.category','Category', required=True, change_default=True),
 		'list_price': fields.float('List Price'),
-		'standard_price': fields.float('Standard Price', required=True, digit=(12,6)),
+		'standard_price': fields.float('Cost Price', required=True, digit=(12,6)),
 		'volume': fields.float('Volume'),
 		'weight': fields.float('Weight'),
-		'cost_method': fields.selection([('standard','Standard Price'), ('pmp','PMP (Not implemented!)'), ('fifo','FIFO')], 'Costing Method', required=True),
+		'cost_method': fields.selection([('standard','Standard Price'), ('average','Average Price')], 'Costing Method', required=True),
 		'warranty': fields.float('Warranty (months)'),
 		'sale_ok': fields.boolean('Can be sold', help="Determine if the product can be visible in the list of product within a selection from a sale order line."),
 		'purchase_ok': fields.boolean('Can be Purchased', help="Determine if the product is visible in the list of products within a selection from a purchase order line."),
diff --git a/addons/product/product_view.xml b/addons/product/product_view.xml
index b01215ab595..ab86209540f 100644
--- a/addons/product/product_view.xml
+++ b/addons/product/product_view.xml
@@ -58,14 +58,15 @@
 							<field name="warranty"/>
 							<field name="rental" select="1"/>
 							<field name="list_price"/>
+							<newline/>
 							<field name="standard_price"/>
+							<field name="cost_method"/>
 							<!-- 
 							<field name="price_margin"/>
 							<field name="price_extra"/>
 							-->
 							<field name="uos_id" />
 							<field name="uos_coeff" />
-							<field name="cost_method"/>
 							<newline />
 							<field name="seller_ids" colspan="4" select="1" nolabel="1" widget="one2many_list"/>
 						</page>
diff --git a/addons/purchase/__init__.py b/addons/purchase/__init__.py
index d0e7a81b176..c4dc0a0e54f 100644
--- a/addons/purchase/__init__.py
+++ b/addons/purchase/__init__.py
@@ -31,3 +31,4 @@ import partner
 import stock
 import wizard
 import report
+import stock
diff --git a/addons/purchase/purchase.py b/addons/purchase/purchase.py
index 822508bf712..955ea80fc86 100644
--- a/addons/purchase/purchase.py
+++ b/addons/purchase/purchase.py
@@ -93,7 +93,7 @@ class purchase_order(osv.osv):
 		'validator' : fields.many2one('res.users', 'Validated by', readonly=True),
 		'notes': fields.text('Notes'),
 		'invoice_id': fields.many2one('account.invoice', 'Invoice', readonly=True),
-		'picking_ids': fields.one2many('stock.picking', 'purchase_id', 'Picking List', readonly=True, help="This is the list of picking list that have been generated for this invoice"),
+		'picking_ids': fields.one2many('stock.picking', 'purchase_id', 'Picking List', readonly=True, help="This is the list of picking list that have been generated for this purchase"),
 		'shipped':fields.boolean('Received', readonly=True, select=True),
 		'invoiced':fields.boolean('Invoiced & Paid', readonly=True, select=True),
 		'invoice_method': fields.selection([('manual','Manual'),('order','From order'),('picking','From picking')], 'Invoicing method', required=True),
@@ -231,7 +231,7 @@ class purchase_order(osv.osv):
 				'type': 'in',
 				'address_id': order.dest_address_id.id or order.partner_address_id.id,
 				'invoice_state': istate,
-				'purchase_id': order.id
+				'purchase_id': order.id,
 			})
 			for order_line in order.order_line:
 				if not order_line.product_id:
@@ -250,7 +250,8 @@ class purchase_order(osv.osv):
 						'location_dest_id': dest,
 						'picking_id': picking_id,
 						'move_dest_id': order_line.move_dest_id.id,
-						'state': 'assigned'
+						'state': 'assigned',
+						'purchase_line_id': order_line.id,
 					})
 					if order_line.move_dest_id:
 						self.pool.get('stock.move').write(cr, uid, [order_line.move_dest_id.id], {'location_id':order.location_id.id})
@@ -265,7 +266,7 @@ class purchase_order(osv.osv):
 			'shipped':False,
 			'invoiced':False,
 			'invoice_id':False,
-			'picking_ids':[],
+			'picking_ids':False,
 			'name': self.pool.get('ir.sequence').get(cr, uid, 'purchase.order'),
 		})
 		return super(purchase_order, self).copy(cr, uid, id, default, context)
diff --git a/addons/purchase/stock.py b/addons/purchase/stock.py
index 2cfd521af5a..a0e616e6e6a 100644
--- a/addons/purchase/stock.py
+++ b/addons/purchase/stock.py
@@ -28,6 +28,16 @@
 
 from osv import osv, fields
 
+class stock_move(osv.osv):
+	_inherit = 'stock.move'
+	_columns = {
+		'purchase_line_id': fields.many2one('purchase.order.line', 'Purchase Order Line', ondelete='set null', select=True),
+	}
+	_defaults = {
+		'purchase_line_id': lambda *a:False
+	}
+stock_move()
+
 #
 # Inherit of picking to add the link to the PO
 #
diff --git a/addons/stock/wizard/wizard_partial_picking.py b/addons/stock/wizard/wizard_partial_picking.py
index 7a11a50636d..7407b884c73 100644
--- a/addons/stock/wizard/wizard_partial_picking.py
+++ b/addons/stock/wizard/wizard_partial_picking.py
@@ -56,8 +56,20 @@ def _get_moves(self, cr, uid, data, context):
 		quantity = m.product_qty
 		if m.state<>'assigned':
 			quantity = 0
-		_moves_arch_lst.append('<field name="move%s" />\n<newline />' % (m.id,))
+		_moves_arch_lst.append('<field name="move%s" />' % (m.id,))
 		_moves_fields['move%s' % m.id] = {'string' : '%s - %s' % (m.product_id.code, m.product_id.name), 'type' : 'float', 'required' : True, 'default' : make_default(quantity)}
+		if (pick.type == 'in') and (m.product_id.cost_method == 'average'):
+			price=0
+			if hasattr(m, 'purchase_line_id') and m.purchase_line_id:
+				price=m.purchase_line_id.price_unit
+			currency=0
+			if hasattr(pick, 'purchase_id') and pick.purchase_id:
+				currency=pick.purchase_id.pricelist_id.currency_id.id
+			_moves_arch_lst.append('<group><field name="price%s"/>' % (m.id,))
+			_moves_fields['price%s' % m.id] = {'string': 'Unit Price', 'type': 'float', 'required': True, 'default': make_default(price)}
+			_moves_arch_lst.append('<field name="currency%d"/></group>' % (m.id,))
+			_moves_fields['currency%s' % m.id] = {'string': 'Currency', 'type': 'many2one', 'relation': 'res.currency', 'required': True, 'default': make_default(currency)}
+		_moves_arch_lst.append('<newline/>')
 		res.setdefault('moves', []).append(m.id)
 	_moves_arch_lst.append('</form>')
 	_moves_arch.string = '\n'.join(_moves_arch_lst)
@@ -78,6 +90,21 @@ def _do_split(self, cr, uid, data, context):
 			too_few.append(move)
 		else:
 			too_many.append(move)
+		if (pick.type == 'in') and (move.product_id.cost_method == 'average'):
+			product_obj = pooler.get_pool(cr.dbname).get('product.product')
+			currency_obj = pooler.get_pool(cr.dbname).get('res.currency')
+			users_obj = pooler.get_pool(cr.dbname).get('res.users')
+
+			product = product_obj.browse(cr, uid, [move.product_id.id])[0]
+			user = users_obj.browse(cr, uid, [uid])[0]
+
+			qty = data['form']['move%s' % move.id]
+			price = data['form']['price%s' % move.id]
+			currency = data['form']['currency%s' % move.id]
+
+			new_price = currency_obj.compute(cr, uid, currency, user.company_id.currency_id.id, price)
+			new_std_price = ((product.standard_price * product.qty_available) + (new_price * qty))/(product.qty_available + qty)
+			product_obj.write(cr, uid, [product.id], {'standard_price': new_std_price})
 
 	for move in too_few:
 		if not new_picking: