Inventory aging analysis

The inventory aging analysis determines the storage duration of an item. That is, for how long a given item quantity is in storage. The main purpose is to find out which items stay in inventory for a long time or are perhaps becoming obsolete.

You can perform the inventory aging analysis in the Perform Inventory Aging Analysis (whina1440m000) session.

The analysis is based on a reference date specified by the user, the dates of the receipt, and the consumptions of the item.

To determine the storage duration of a given item quantity, the analysis subtracts the receipt date of the item from the reference date.

To determine the item quantity present on the reference date, the aggregated consumption quantities are subtracted from the quantity present on the receipt date.

The aggregated consumption quantities comprise the consumptions starting from the receipt date up to the last consumption date before the reference date.

Consumptions performed after the reference date are excluded from the inventory aging analysis.

Example

The reference date is 31 December yy25.

100 Items X were received on 25 September yy25. Since the receipt date, there have been various consumptions totalling 50 items X. A consumption of 10 items X performed on 12 January yy26 is excluded from the analysis, because this was after the reference date.

Thus on the reference date, the storage duration of 60 items X is 97 days, which is the result of subtracting 25 September from 31 December and subtracting the aggregated consumptions of 40 items X from the receipt quantity of 100 items X.

The aging analysis is performed by item, receipt date, and warehouse. Therefore, if item X is stored in multiple warehouses, the storage duration can be different for warehouses with different receipt dates.

The receipt and consumption data used in the inventory aging analysis are taken from the Inventory Receipt Transactions (whina1512m000) and Inventory Consumptions (whina1514m000) sessions.

The aging analysis results are displayed in a report that is generated in the Perform Inventory Aging Analysis (whina1440m000) session.

Setup

You can define various properties for the inventory aging analysis in the Inventory Aging Analysis Definition (whina1140m000) session.

You can classify the storage duration by grouping the storage duration into aging periods. For example, Aging period A = up to 14 days, Aging period B = up to six months, Aging period C = more than one year. You can define a maximum of four aging periods. The storage duration of item X in the previous example would be displayed in Aging period B on the report.

You can exclude items with short inventory durations by specifying a minimum storage duration. For example, if the minimum storage duration is three days, items with shorter storage durations are excluded from the report.

To exclude internal inventory transactions from the inventory aging analysis, you can select the Ignore Internal Warehouse Transfers check box in the Inventory Aging Analysis Definition (whina1140m000) or the Perform Inventory Aging Analysis (whina1440m000) session.

If the multisite functionality is activated, the process ignores internal transactions by skipping transfers whose transfer-from sites are identical to the transfer-to sites. If the multisite functionality is not activated, warehouse transfers with identical transfer-from and transfer-to enterprise units are skipped.

To exclude revaluation-order based inventory transactions from the inventory aging analysis, you can select the Ignore Revaluation Orders check box in the Inventory Aging Analysis Definition (whina1140m000) session or the Perform Inventory Aging Analysis (whina1440m000) session.

Creating an inventory aging analysis report

  1. In the Inventory Aging Analysis Definition (whina1140m000) session, define the properties of the inventory aging analysis definition.
  2. In the Perform Inventory Aging Analysis (whina1440m000) session, select the required inventory aging analysis definition.
  3. Specify the reference date.
  4. If required, adjust the default settings taken from the Inventory Aging Analysis Definition (whina1140m000) session.
  5. Use the fields in the Selection Range group box to specify the criteria for the site, warehouse, order, and item data that you want to print.
  6. Click Print.

Report layout

The inventory aging data is displayed by receipt date for each item. The item data is displayed by warehouse and site.

The Quantity column shows the item quantities present on the reference date.

For each aging period defined in the Inventory Aging Analysis Definition (whina1140m000) session, a column shows the corresponding storage durations.

The total quantities and amounts are displayed by item, item group, or item valuation group according to the settings of these check boxes in the Perform Inventory Aging Analysis (whina1440m000) session:

  • Aggregate by Item
  • Totals by Item Group
  • Totals by Item Valuation Group