The inventory analysis report will give you an item breakdown of the quantity on hand, the accounting cost and the last cost. It will then calculate the average cost of your inventory on hand. If you check the "show yearly total" box you will also get the quantity sold and value of the quantity sold for a year to date and last 12 months period. We will also calculate the number of inventory turns you had over the last twelve months.
This report is an integral part of an overall inventory management plan, if you do not have a means of measure something than you cannot manage it. Being able to see information like how much inventory you are carrying, where it is and how quickly it moves is the first step in being able to stream line your inventory offerings and minimize your inventory cost without affecting you customer base.
Inventory turn – In layman's terms an inventory turn number is how many times do you replenish your stocking inventory. So if you decide to allocate $1000.00 of your standing inventory to item A. The inventory turn is a measure of how effective that $1000 investment is over a period of time. If over a years' time your inventory turn is one, than maybe you can re-allocate $750 of that $1000 investment someplace else and still keep the customer satisfied that you stock the item. Or maybe the turn is 10 which may seem great, unless you have periods of stock outs in which case you are not keeping your customer satisfied and you should probably increase your investment. The inventory turn should be used as measuring stick that can give you a relative point to be evaluated and not as a gage to tell you where you are.
Manufacturer – press F9 for a list of manufacturers, choose one to run this report
Warehouse – which warehouse are you evaluating, press F9 for a list.
Show yearly totals – When checked this report will show yearly totals for quantity on hand and calculate an inventory turn ratio for you, when not checked we will show you the location of the items.
