V9 - Inventory turnover report

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Use case

The Inventory turnover report (Operations > Reports > Inventory > Inventory turnover) shows how frequently a company sells and replenishes its stock during a designated period, comparing the cost of goods sold (COGS) to the average inventory held during that period. 

 

While the basics for running any report in SOS Inventory are covered in Reporting introduction and Running a report, the filters, options, and columns specific to the Inventory turnover report are explained below.

 

Filters

From date and To date.

• Relative/Absolute toggle. Used for customized and scheduled reports. 
  • Relative automatically recalculates the date whenever the report is reopened or run. It must be used in tandem with the Quick date selector, which assigns a general time frame (e.g., Today, Yesterday, Start of last week, End of last month, etc.) instead of a specific date. 
  • Absolute, the default, keeps the exact date.
• The system automatically populates the current date in the date field by default. You can change specific dates manually according to the Date format established in your User settings (either MM/DD/YYYY or DD/MM/YYYY), or by using the Calendar (event). 
• Even if you are not creating or running a customized or scheduled report, you may find it more convenient to use the Quick date selector, which assigns a general time frame (e.g., Today, Yesterday, Start of last week, End of last month, etc.) instead of a specific date.

 

Location. Select All locations or a single location. All, the default, displays only the total quantities for item(s) across all locations.

 

Categories. Select All or individual categories. All is the default. Multiple categories can be selected. To use this filter, categories must be defined in SOS Inventory.

 

Vendor. Select one from the dropdown. The vendors listed are the preferred vendors from item definitions.

 

Item name contains. Type all or part of an item name to display matching items.

 

Options

Hide rows with no shipments or inventory. If you have items with no shipments or no inventory, check this option to prevent them from being displayed in the report.

 

Use standard costs. Values items according to their purchase cost, as listed in the item definition.

 

Show "from" and "to" dates. If checked, shows at the top of the report, based on your From date and To date filters. The date range appears when Display is selected under Retrieve your report. If the report is retrieved by Email or Download, the date range will appear only if you print your spreadsheet. If a header is also entered for the report, the date range will be displayed below the header.

 

Group by. A set of options that allows you to group data on the report. The options include None, Category, or Vendor. The default is None, which displays items in alphabetical order. If your Group by option is set to Category, any item that has not been assigned to a category will be included in the first grouping displayed on the report, under the heading <no category>. The same principle applies when the Group by option is set to Vendor. Items with no preferred vendor defined will be listed first on the report, under the heading <no vendor>.

 

Header. Enter header text for the report, if desired. The header appears when Display is selected under Retrieve your report. If the report is retrieved by Email or Download, the header will appear only if you print your spreadsheet.

 

Footer. Enter footer text for the report, if desired. The footer appears when Display is selected under Retrieve your report. If the report is retrieved by Email or Download, the footer will appear only if you print your spreadsheet and will display above the system-generated text, Report Generated [date] [timestamp].

 

Columns

The default columns for the Inventory stock status report are Name and Description. A name links to the item record on the Items list.

 

Fifteen additional SOS column options are available, as well as any custom fields you have defined for items.

 

Sample Inventory turnover report

The sample Inventory turnover report below was for the date range from Start of last month to End of last month, for All locations. Computer was entered in the Item name contains field, and the option Hide rows with no shipments or inventory was checked. The default columns, Name and Description, were selected for display. Also included are the five built-in columns: Units Turned, COGS, Avg Inventory, Turnover, and Days of Inventory.

 

Here is how the turnover rate for the item Computer Monitor - 19 in was calculated: 

1. A value in the Units Turned column shows the quantity of monitors sold (turned) during last month was 18.
2. The COGS value for those units was $4,018.00. 
3. The Avg Inventory value—calculated as the sum of the beginning and ending inventory for the reporting period, divided by two—was $482.91. (If you export the shipments for the same date range and group them by item, then add the oldest and newest costs together and divide by two, you can verify this value.)
4. The monitor's Turnover ratio of 8.32 was calculated using the formula COGS ÷ Avg Inventory (4,018.00 ÷ 482.91).
5. The Days of Inventory value is used to determine, based on the Turnover ratio, the number of days in a year that an item's inventory remains in stock. Days in year ÷ Turnover = Days of Inventory (365 ÷ 8.32 = 43.87).  

 

The Total line reflects the sum for all items in the Units Turned, COGS, and Avg Inventory columns. The total Turnover and Days of Inventory values are based on the total COGS and total Avg Inventory and are calculated using the same formulas described in Steps 4 and 5 above.

 

 

Notes

A high value in the Turnover and a low value in the Days of Inventory columns indicate that an item is being sold rapidly. A low Turnover value, combined with a high Days of Inventory number, may indicate overstocking, weak sales, or inefficient inventory management.