Inventory Turnover Report

The Inventory Turnover Report will calculate the turnover ratio for an inventory item. The ratio measures the number of times the inventory item is sold or used during a given period. A low turnover rate may mean that the inventory item is overstocked or no longer used. A high turnover rate may mean not enough of the inventory item is being ordered and the inventory that is on hand is inadequate.

Contents

How is the turnover rate calculated?
Print the Inventory Turnover report

How is the turnover rate calculated?

This is the calculation the application uses to find the inventory turnover rate. All calculations are limited by the report date range.

Quantity = Qty

Inventory Turnover Rate = [Qty Issued] / [Average Inventory Level]

Average Inventory Level = ( [Beginning Qty] + [Ending Qty] ) / 2

Quantity Received = [Accounts Payable Qty Received] + [Materials Management Qty Received]

Ending Quantity = [Beginning Qty] + [Qty Received] - [Qty Issued] + [Other Qty]

Other Quantity = [Adjustment Qty] + [Returned Qty] + [Salvaged Qty]

Print the Inventory Turnover report

Set up the report options for printing.

Do this...

1. Open Connect Materials Management > Reports > Inventory Turnover Report.

2. Select a report title.

3. Enter the Report Dates.

4. Set up the Include Inactive Inventory checkbox.

This option uses the inventory item's activation and termination date to determine if the inventory item is active or inactive. An inactive inventory item has an activation date that occurs after the report date range or a termination date that occurs before the report date range.

What do you want to do?

Include all inventory items. Select Include Inactive Inventory to include all inventory items on the report regardless of the activation/termination date.
Exclude inactive inventory. Deselect Include Inactive Inventory to only include inventory items with an active status. In other words, the inventory item does not have an activation or termination date or the activation/termination date falls within the given date range.

5. Set up the Include Inventory With a Zero Quantity checkbox.

Inventory With a Zero Quantity refers to inventory items with neither a positive or negative balance.

What do you want to do?

include inventory items that have a zero (0) recorded as the inventory's quantity. Select Include Inventory with a Zero Quantity.
Include only inventory items that do not have a zero quantity. Deselect Include Inventory with a Zero Quantity. This option will include inventory items with a quantity that is positive or negative.

6. Set up the Print Location Detail checkbox.

Use the Print Location Detail option to print the inventory turnover ratio for each location where the inventory item is stored.

What do you want to do?

Print the physical position for each inventory item. For example, the inventory item's row number. Select Print Location Detail.
Summarize the location detail when the inventory item exists in more than one location. Deselect Print Location Detail to use the word Multiple.

7. Click Print (CTRL+P).

The report prints.