Inventory Carryforward Slip and Inventory Age Calculation


Inventory age is a calculation method used to find out how long the products entered into your warehouses remain in the warehouses.


Route: ERP > Product and Stocks > Cost


Inventory Age

Inventory age is a calculation method used to find out how long the products entered into your warehouses remain in the warehouses. By using the inventory age method, you can calculate how long it takes your inventories to get empty and thus determine more accurate warehouse strategies.


Inventory age calculations are made as follows;

The inventory age is calculated by retrospectively distributing the end-of-period inventory to the inventory entries. Goods receipts that are smaller than the end date, Production Output Receipt, carryforward receipt, stock-taking receipt, Production Input Receipt, import delivery notes, and if warehouse is selected, warehouse receipts and shipment delivery notes are received. According to the transaction date, the end-of-period stock is deducted from the end to the beginning. Inventory age is found by dividing the weighted total period-end inventory, which is found by multiplying the difference between the input values and the delivery date and ending date.

First of all, as of a specified date, how many of the products are in your warehouse, past purchases are checked. When the current amount is reached, the weight consisting of the product of the day and the amount is found by dividing it by the total amount.

For example;

Available Stocks: 60 pcs

Purchased 20 pieces 7 days ago,

Let's say that 40 pieces were bought 30 days ago.

When calculating, it is determined that the amount in the available stock, that is, 20 of the 60 items in the example, consists of the purchase we made 7 days ago, and the remaining 40 pieces are in your possession as a result of the purchase made 30 days ago.

Starting from here;

(7*20+30*40) / 60 = 22.33 Inventory age of your product

If we formulate

Inventory Age = Total days * Stock quantity weights / available Stock Quantity


Inventory Turnover

Inventory Turnover = Cost of Goods Sold / Average Inventory


Cost of Goods Sold

The total cost of sales made within a year (When we list the sales and sales returns transaction type and show cost option from the inventory analysis report, the net sales cost is calculated. This is calculated over the net sales cost.)


Average Inventory

This value can be calculated in different ways, the most known form is the formula “(New Year's Inventory Value + Year-End Inventory Value) / 2¨. In another way, the inventory value of a certain day of each month (such as the beginning, end, middle of the month, etc.) is added for the whole year and divided by 12.

It also gives (Beginning Inventory + end-of-period stock) / 2 = average inventory, according to the date range.

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