We have POS in 4 toy stores here in Tampa Bay. We'd like to run an aging report regularly in each location so we can see what products are still here after 90 days / 120 days etc so we can put those items on clearance to make room for new merchandise.First, when you input a new item, does the inventory system somehow stamp the input date on the data file? - then, what are the steps to run this report we're referring to above?Thanks very much,Chad
Stamps dates, etc, may not easily give how well inventory is selling.
Usually, the inventory turnover, in number of days, shows how well inventory is selling. The inventory turnover should be compared to an ?expected? value. (House builders have a very different inventory turnover than supermarkets.)
From QB POS reports, inventory turnover in days for each item should be fairly easily determined. The item summary report should give the total sales for an item over a period, e.g. 90 days. Divide this number (sales) by the average item inventory during the period to determine the item inventory turnover number.
The average inventory for an item during a period can be determined from the item inventory valuation report. Determine the item?s value at the beginning of the period, and at the end of the period, and then divide the sum of these two numbers by 2 to get the average inventory for the item during the period.
Then, divide the average inventory value into the inventory item sales to get the inventory turnover number. Divide this number into 360 days to get the inventory turnover in days number for the period selected.
Compare the average turnover in days to an ?expected? value, to decide how well your inventory is selling.
Government, and other databases, provide national averages (a good expected turnover number to compare to) for various retail sectors. Richard
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