Stock Transfer Receipt and Stock Age Calculation
Stock age is a calculation method used to find out how long the products entered into your warehouses remain in the warehouses.
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Stock Age
Stock age is a calculation method used to find out how long the products entered into your warehouses remain in the warehouses. By using the stock age method, you can calculate the melting times of products in your stocks and thus determine more accurate warehouse strategies.
Stock age calculations are made as follows;
Stock age is calculated by distributing the end-of-period stock to stock entries retrospectively. Purchase delivery notes that are less than the end date, production issue receipt, transfer receipt, counting receipt, production entry receipt, import delivery notes, and if the warehouse is selected, warehouse receipts and delivery notes are received. It is calculated by deducting the end-of-period stock from the beginning to the end according to the transaction date. The stock age is calculated by multiplying the differences between the input values and the delivery date and the end date, and dividing the weighted total by the end-of-period stock.
First of all, how many units of the product are in your warehouse as of a specified date, backward purchases are looked at. When the current quantity is captured, it is found by dividing the weight consisting of the product of the day and the quantity by the total amount.
For example;
Current Stock: 60 units.
Let's say 20 units were purchased 7 days ago,
Let's say 40 units were purchased 30 days ago.
When making the calculation, the amount in the current stock, that is, in the example. It is done by determining that 20 of the 60 pieces are from 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.
Based on this;
(7*20+30*40) / 60 = 22.33 Stock age of your product
If we formulate,
Stock Age = Total days * Stock quantity weights / Current Stock Amount
Stock Turnover Rate
Stock Turnover Rate = Cost of Goods Sold (COGS) / Average Inventory
Cost of Goods Sold
Total cost of sales made within a year (Stock analysis When we make a list by selecting the sales and sales returns transaction type and the show cost option from the report, the net sales cost appears. It is calculated based on the net sales cost.)
Average Inventory
This value can be calculated in different ways, the most well-known form is the formula "(New Year's Inventory Value + Year-End Inventory Value) / 2¨. Another form is based on a certain day of each month (month). It is the addition of the inventory value for the whole year (beginning, end, middle, etc.) for the whole year and dividing by 12.
Also, according to the date range, (beginning of the period stock + end of period stock) / 2 = average inventory is given.