Now available in Release X-r3, use this tool to review the movement activity of your inventory and its aged value. It can help you identify slow moving product items or product items that have not moved at all.
This tool examines your inventory database and presents an analysis of the aged status of your stock. Product items where no stock is being carried and stock items that are set as ‘non diminishing’ or as ‘kits’ are excluded from the analysis.
The tool provides the following features:
- The total physical, free and allocated quantity of each stock item, its unit cost and total value.
- The age of each applicable item, broken down into 4 periods. Current movements, and three additional time periods.
- Time periods may be specified in weeks, fortnights, months, quarters or years.
- The last activity of each item. This is either the sale date, transfer out date, or materials usage date, whichever is latest. The last activity date only refers to stock leaving inventory, not arriving through a purchase or acquisition of some other type.
- The ability to drill down into the movement activity history of each item.
- Totals for all quantities purchased or received and all quantities sold, consumed or dispatched.
- Totals for quantities carried in stock by period break-down, including charting of the proportions of each.
- The ability to ‘tag’ all or selected items for pasting into stocktakes and Stock Adjustments.
- A dedicated ‘tag’ tool to tag all items based on its aging category or if there has been no activity.
- The analysis may be exported to applications such as Excel by right clicking on the grid.
The ageing tool begins by slotting quantities into their applicable ageing columns: Current (most recent time period), then Period 1, Period 2 and Period 3+. Periods 3+ is the last time period and includes all inventory that has been received into the system from when tracking of the item began.
Next sales, outward transfers and material usage is considered. First in First Out (FIFO) methodology is always assumed, so inventory levels are reduced in each ageing column from the oldest column working forward in time.
For example, if the analysis was aged by month and 100 units were acquired 3 or more months ago and 50 units acquired today, then the quantities would be placed in each applicable period as follows:
Next, if total sales came to 110 units, then the last ageing period would be reduced by 100 units (regardless of when the sales actually occurred) and the next oldest (in this case, the current period) by 10 units. Resulting in the following: