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Turns Analysis


This report is one of the most important management reports for analyzing your inventory. Proper use can help you improve the profitability of your business. This report will show you clearly which of your inventory items are likely selling the best vs. those which are not, which items may cause potential service problems, and which items may need to be marked down and promoted in order to free up additional working capital.
Based upon the date range you select, and actual shipments for items during that period of time, the report estimates annual shipments then divides that estimate by the current quantity on hand. Items with relatively high turns may be some of your most popular items, so you might want to evaluate their net available position (as that position will take into account what's been ordered as well as the current quantity on hand and committed).
High turns, low net available items may cause customer service problems. Maybe you need to evaluate your suppliers, and/or order additional merchandise. Conversely, low turns, high net available items may mean you've bought too much. You might evaluate how much of your business's working capital is not, in fact, "working" for you.
Press [OK] to run the query and view the report in print preview. Fields are the report are as follows:
Item Code   The code or abbreviation for an item. 
Description   The full description for an item. 
UOM Code   The abbreviated unit of measure for an item. 
Shipments for Range Selected   The number of actual shipments of this item within the date range selected. 
Estimated Annualized Shipments   This the estimated annualized shipments based upon the actual shipments that have occurred during the date range selected. This estimate properly takes into account when the item was first available in inventory within the date range selected.  
Quantity On Hand   This is quantity of items currently in stock. 
Estimated Inventory Turns   This number represents the estimated number of times per year this item is turning based upon the rate at which it is shipping during the date range you have specified. To get this number, divide the Estimated Annualized Shipments by the Quantity On Hand. 
Net Available   This number is equal to the quantity on hand plus the quantity on order minus the quantity committed. 
For step-by-step instructions, see the common inventory procedures section.