Inventory Turnover (IC134)
Run Inventory Turnover (IC134) to print a report of inventory turnover based on item sales. Run this program if you use the Order Entry application. Otherwise, if you do not use the Order Entry application, run IC135 (Inventory Turnover by Issues) to base inventory turnover rates on item issues.
Processing Effect
This form calculates inventory turnover rates based on sales quantities and average stock-on-hand quantities. In order to calculate accurate turnover rates, you must run this program immediately after you close an inventory period in IC190 (Closing). The closing batch program (IC190) captures period end balances and calculates average stock-on-hand quantities.
Calculations used by this form are listed below.
Average Inventory is the sum of period end item stock-on-hand quantities divided by the number of periods for which balances exist.
Turnover Rate is the sum of inventory sales quantities for the last 12 months divided by average inventory quantities.
This program requires you to enter the period and year range for which to calculate turnover rates. For example, enter
1 1993 - 4 1993
to calculate turnover rates for the first four periods in 1993. This form also provides an update option which enables you to update inventory turnover rates to Item Location records in IC12.1 (Item Location). You can select the items affected by this form by location, report group, and/or sales class.