Inventory Turnover Report

The Inventory Turnover Report allows you to track product performance and see how quickly they are sold over a specific period. This report helps you evaluate inventory management efficiency and ensure a continuous flow of goods without overstocking or running out of stock.

Before You Begin

• You must have the “Track Inventory” and “View His Own Reports” permissions to access this report.

Steps to View the Inventory Turnover Report

1. From the main menu, click “Reports.”
2. Click “Store Reports.”
3. Then go to “Inventory Turnover.”
4. Set the required filter criteria:
   • Product: you can search by product name or code, with the ability to select more than one product.
   • Warehouse: select from the list of defined warehouses.
   • Date: select the required time period (from date – to date).
   • Category: select from the list of defined categories.
   • Brand: select from the list of defined brands.
   • Group By: Category or Brand.
5. Click the “Show Report” button.

Report Content and Main Columns

• Code: the item’s identification number.
• Name: the product or service name.
• Cost of Sales ([Currency]): displays the product’s average cost price. When the product is sold, the cost entry is created based on the value shown in this column. A hint icon (ⓘ) appears next to the column header, and hovering over it shows the mathematical equation: = Σ (Sold Quantity × Unit Cost at time of sale) − Refunds COGS − Credit Notes COGS.
• Beginning Avg. Inventory ([Currency]): represents the first average cost price of the product since the first addition transaction (purchase invoice or inventory addition permit). A hint icon shows the equation: = Stock Quantity at From Date × Avg. Unit Cost at From Date.
• Ending Avg. Inventory ([Currency]): displays the latest average cost price of the product. A hint icon shows the equation: = Stock Quantity at To Date × Avg. Unit Cost at To Date.
• Avg. Inventory ([Currency]): calculated via the equation shown in the hint icon: = (Beginning Avg. Inventory + Ending Avg. Inventory) / 2.
• Turnover Ratio: represents a ratio showing how quickly inventory is sold, displayed rounded to 4 decimal places (e.g., 1.1678 instead of 1.17). A hint icon shows the equation: = Cost of Sales / Avg. Inventory.
• Avg. Days to Sell Inventory: shows the time needed to sell through the entire inventory. A hint icon shows the equation: = Number of Days in the Period selected in the report / Turnover Ratio.
• Turnover (Times): shows the number of times the inventory was sold through during the period. A hint icon shows the equation: = Turnover Ratio × Number of Days in the Period selected in the report.
• Brand: the product’s brand.
• Branch: the branch associated with the item.
• Category: the category or group.
• Warehouse: the product’s storage location.

Totals Row

The report displays a total row at the end, which includes:

• Total Turnover Ratio: calculated by summing the turnover ratios of all rows, then dividing the result by the number of rows.
• Total Avg. Days to Sell Inventory: calculated by summing the “Avg. Days to Sell Inventory” values of all rows, then dividing the result by the number of rows

How the System Works

• The currency displayed next to the financial column headers is automatically derived from the account’s base currency, and cannot be customized differently for each report view.
• Rounding the Turnover Ratio to 4 decimal places is a display precision change only, and does not affect the actual calculated value or any subsequent calculations that depend on it (such as Turnover (Times) or Avg. Days to Sell Inventory).
• The calculation hint tooltips (ⓘ icon) are loaded dynamically for each numeric column, and appear as soon as the cursor hovers over the icon, without needing to reload the page.

Validation Rules

• The currency is added exclusively to the headers of 4 financial columns only: Cost of Sales, Beginning Avg. Inventory, Ending Avg. Inventory, and Avg. Inventory.
• No currency is added to the Turnover Ratio, Turnover (Times), or Avg. Days to Sell Inventory column headers, as these are dimensionless ratios.