The detailed Inventory Usage Report analyzes how the inventory in your store is being stored and sold on an item-by-item basis. This is useful for evaluating your inventory practices. For example, it can help you determine how much of a particular item should be kept in stock. The report is organized by category and includes calculations based on transaction types 11 (sale), 12 (credit memo), and 15 (non-sale issue). Within a category, information on each item includes the following:
This information is summarized into totals for each category, which are also presented on the summary version of this report. The last line of the report prints overall calculations for all items included on the report.
The turn ratio is the rate of turnover of an item in stock, which relates to how long the item sits on your shelf. For example, a low turn ratio indicates a long shelf life. Be-cause it is best not to tie up a lot of assets in inventory, the turn ratio helps you determine the best amount to keep on hand and how often to reorder. The cost-to-sales ratio gives the percentage of your revenue absorbed by the cost of the goods. This helps you determine whether your prices are appropriate.
This report only includes those items that sold at least once in the time period. For all items in a category, including those with zero sales, see the Inventory Usage Status Report – Detailed.
Use the following steps to set up and submit an Inventory Usage Report:
| Note: | Items without activity do not print on this report. |
| Field | Definition | ||
|---|---|---|---|
| Dates of Activity | Enter the date or a range of dates. If you leave this field blank, the beginning date is the first day of the current month, and the ending date is the current date.
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| Category | Type a particular category if you want to limit the information on the report. Leave blank to print all categories. | ||
| Print Time on Report | Printing the time helps you identify the most current report when the same report is printed more than once during a day. This field defaults to Y to print the time on the report. If you do not want the time to print on a report, type N. We recommend that you always print the time on a report. | ||
| Summary Only | This field appears for reports with both detailed and summary versions. Enter N to print the detailed report. We recommend printing a detailed report only if you need detailed information. | ||
| Duplex | This field appears for terminals that have report type 2 enabled in the Set Up Printer Controls screen. Duplex mode enables printing on both sides of the paper.
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| Landscape | This field appears for terminals that have report type 2 enabled in the Set Up Printer Controls screen. It prints horizontally on the paper. | ||
| Number of Printed Lines per Page | This value tells the computer how many lines to print on each page of the report. A typical 11-inch page can contain up to 66 lines, but this field defaults to 60 to allow three-line margins at the top and bottom of the page.
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| Total Number of Lines per Page | This field indicates the length of the paper in the printer. A typical 11-inch page contains 66 lines. Your system interprets a 0 or 66 in this field to mean that standard 11-inch paper is loaded in the printer. Because a 66 causes a form feed to take more time, accepting the default, 0, is recommended. | ||
| Print Report To | This field tells the computer where to send the report. The following list contains the different selections available for this field.
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| Command Line Options | The line at the bottom of the screen contains commands to print the report and to save or change the report settings.
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You can also set up this report on the Set Up Closing Processes screen (1-6-3) to print automatically during closing processes. If you do this, the report prints usage for all categories.
| Callout | Item | Description |
|---|---|---|
| 1 | Date Range | Range of dates for the report information. |
| 2 | Item # | Identification number of the inventory item. |
| 3 | Description | Item description. |
| 4 | Current Cost per Sales Unit | Cost per sales unit of the inventory item. The current cost is determined at each inventory update. This is the total of what you paid for all of the units of the item in stock, divided by the quantity on hand of the item. |
| 5 | Beginning Value | Value of the beginning quantity on hand. |
| 6 | Ending Value | Value of the ending quantity on hand. |
| 7 | Sales Amount | Revenue from retail sales of the item. |
| 8 | Qty Sold | Quantity sold. |
| 9 | Cost of Goods | Cost of the quantity sold. This is the total of the costs for each item sold, determined by the cost at which you received the items and the costing method you use (LIFO, FIFO, average or standard). |
| 10 | Turn Ratio | Average rate of inventory turnover during the time period. (This is also the cost of goods divided by the average value of your inventory.)
Turn Ratio = Cost of Goods ÷ Average Value of Inventory Average Value of Inventory = (Beginning Value + Ending Value) ÷ 2 |
| 11 | Cost % of Sales | Cost percent of sales. The cost of goods as a percentage of the sales price. (This is the ratio of the cost to the sales amount per unit.)
Cost % of Sales = (Cost of Goods ÷ Sales Amount) * 100 |
| 12 | Current QOH | Current quantity on hand of the item, as of the time the report is printed. (This is not necessarily the same as the end of the date range for the report.) |
| 13 | Category | Category of items reported, followed by the individual items in the category. |
| 14 | Inventory Account | Inventory account number set up for the category on the Set Up Category screen (1-7-5-3). |
| 15 | Category Totals | Totals for the category. The total turn ratio and total cost of sales are based on the total values in this column. |
| 16 | Total Inventory Items | Totals for the entire report. |
It is recommended that you print this report on a weekly or monthly basis in order to track how your shelf inventory is used. For example, you can use it to project future sales based on the quantity sold in the time period. This report is also useful for reordering purposes. Look for items with low quantities on hand. These items should appear on the Reorder Notices Report. If they do not, it may be that reorder points are too low or not set up for the items.
The turn ratio on this report can help you keep just the right amount on the shelf and order frequently enough. You can also identify items that do not sell well enough to keep in stock by looking at the turn ratio and cost to sales ratio. You may want to keep this report to have the history available after it has cleared out of your system.
The Beginning and Ending inventory values on this report should always match those on the Inventory Valuation Report for the same dates. You can use this report to verify the cost information for inventory items. If the cost of goods is incorrect, the value of inventory will be incorrect here and on the Inventory Valuation Report.
