Inventory Turnover Report

The inventory turnover report allows you to track product performance and measure how quickly items are sold over a specific period of time. This report helps you evaluate the efficiency of inventory management and ensure the continuous flow of goods without overstocking or stockouts.

Steps to View the Report:

1. From the main menu, click “Reports.”
2. Select “Store Reports.”
3. Click “Inventory Turnover Report.”
4. Set the required time period (From Date – To Date).
5. Choose the warehouse or products you want the report to display.
6. Click the “View Report” button.

Report Content and Key Columns:

• Code: The unique identifier of the item.
• Name: The name of the product or service.
• Cost of Sales: Displays the average cost price of the product. When the product is sold, the cost entry is created based on the value shown in this column.
• Beginning Average Inventory: Represents the first average cost price of the product starting from the first addition (purchase invoice or stock receipt voucher).
• Ending Average Inventory: Displays the latest average cost price of the product, calculated using the formula:

(Average Cost Price × Current Available Quantity).

• Average Inventory: Calculated using the formula:
  ((Opening Average Inventory + Closing Average Inventory) ÷ 2).

• Turnover Ratio (%): Indicates the rate at which inventory is sold, calculated using the formula:
  (Cost of Sales ÷ Inventory Value).

• Turnover (Times): Shows the number of times inventory was sold during the period, calculated as:
  (Turnover Ratio × Number of Days in the Report Period).

• Avg. Days to Sell Inventory: Shows the time needed to sell out the entire inventory, calculated as:
  (Number of Days in the Report Period ÷ Turnover Ratio).