Inventory analysis

Explain inventory value, consumption, shortages and corrections from the stock evidence behind them.

Records in this module

Keep current stock and historical evidence connected

Current product-and-warehouse summaries include the configured stocked range, including zero and never-received items. Their cutoff, ownership and availability basis explain the operating picture. Historical snapshots retain that scope alongside the exact remaining cost layers and reviewed policy.

A later price, supplier or warehouse change cannot rewrite a frozen report. Missing observations remain incomplete history rather than being filled with an assumed zero. Reports disclose the selected period, warehouse scope, stocking units and installation valuation currency.

Out of StockStockSummaries
QuantityAvailable <= 0Stocked = trueProduct.Active = true
ProductWarehouseQuantity On HandQuantity AllocatedQuantity Available
PRD-4388WRH-1307010680
PRD-5214WRH-130290170630
PRD-1187WRH-14038090750
PRD-9814WRH-120500130900
PRD-7631WRH-14026080460
PRD-1758WRH-150540410230

Explain how owned stock is valued

Inventory Manager can trace value through the retained cost method and its source evidence. Third-party custody is shown separately and carries no owned inventory value. Owned held, picked or damaged stock remains in valuation until an authorized economic change is recorded.

Cost method Basis retained for review
Standard The reviewed effective standard and separately classified purchase variance
Weighted average The eligible product-and-warehouse carrying pool and its reconciled quantity and value
FIFO Original eligible layer age, remaining quantity and actual consumption

Physical lot or serial selection still matters. FIFO cannot silently substitute a different controlled identity from the goods actually issued. Customer returns restore original issue cost. Vendor returns remove current carrying value from the exact receipt descendants; original commercial price and settlement differences remain external.

In-transit stock remains owned and is counted once at the carrying source until arrival. It is excluded from that warehouse’s weighted-average physical pool, preserving its departure value when later receipts change the source average. Destination receipt carries that value into its receiving pool.

Slow-Moving SKUsStockSummaries
on handDaysSinceConsumption >= 90 or NeverConsumed = true
ProductWarehouseQuantity On HandUnit CostValue On Hand
PRD-1554WRH-150960249.9640,072.40
PRD-8604WRH-110130873.0437,637.69
PRD-7128WRH-120910334.8238,617.99
PRD-4428WRH-12030617.921,836.45
PRD-5533WRH-110450955.582,749.85
PRD-2029WRH-130750928.6633,011.56

Hand accounting a reconciled change

Inventory Manager prepares an accounting export from unique stock-value changes that have not already been accepted externally. A different Inventory Manager approves its exact contents before transmission. The batch retains mapped accounts, source identities, amount and control snapshots.

Closing inventory value is a reconciliation balance. It is not posted again on top of the adjustments already handed over. Standard-cost purchase variance is separately classified, and the external accounting contract determines its counterpart without creating another payable here.

Submission, transport acknowledgment and authoritative journal acceptance remain distinct. Uncertainty keeps the original request reserved for reconciliation. A correction carries a linked bounded change; retrying the same delivery cannot post another journal. The general ledger remains external.

Low StockStockSummaries
ReorderStateLowOutOfStock
ProductWarehouseQuantity On HandQuantity AllocatedQuantity Available
PRD-3105WRH-120420160120
PRD-4939WRH-15095090800
PRD-1057WRH-130360270960
PRD-8795WRH-1108010530
PRD-7666WRH-140790640850
PRD-5334WRH-11014080630

Start with a reconciled opening position

Migration preserves the current stock, cost layers, claims, owners and partial documents at the agreed cutoff. Opening details reconcile to one external accounting baseline. Historical movements and current opening quantity cannot both be loaded as new stock effects.

Inventory Manager prepares the migration evidence and a different eligible Inventory Manager approves it. Historical receipts, issues and accepted exports remain evidence rather than triggering fresh warehouse or accounting work.

Screens

On-Hand by Warehouse and Low Stock show current quantities. Slow-Moving SKUs distinguishes consumption from relocation. Cycle Count Variance and Adjustments Requiring Approval lead authorized reviewers to the underlying work; visibility does not grant approval authority.

Reports

All reports

Inventory Valuation

Frozen StockSnapshots reconcile exact remaining owned CostLayers by Product, Category, Warehouse and cost method in the installation valuation currency. Include picked/held/damaged owned stock and source-carried in-transit stock once; third-party custody is a separate non-owned quantity disclosure. Unknown costs block a final snapshot. AccountingExports sends only unaccepted event deltas; the closing value is a control balance, never another full-value journal.

Inventory Turns & DOH

Net carrying cost of effective SalesPick and InternalUsage final issues in the selected interval divided by the time-weighted owned inventory value over that same interval; simple internal movements, supplier returns, samples, scrap and adjustments are excluded from consumption and disclosed separately. DOH is interval days divided by turns. Customer returns reduce eligible consumption through linked original costs. Zero/nonpositive denominator or incomplete cutoff coverage is unavailable, never infinity or a manufactured zero. Category rollups sum compatible currency numerators and denominators before dividing.

Stockout Report

Stocked active product/warehouse days at the declared local end-of-day cutoff with eligible QuantityAvailable at or below zero divided by all completely observed stocked active product/warehouse days. Never-received products participate through StockSummaries. Missing daily snapshots are reported as incomplete coverage and excluded from both numerator and denominator, not treated as in-stock days. It measures sampled daily availability, not continuous intraday service level.

Cycle Count Accuracy

First submitted blind lines within the frozen absolute quantity and percentage tolerances divided by all completed eligible first-count lines in the count-start cohort; explicit zero/zero is accurate, positive found stock is review-required. Duplicate/recount attempts do not expand the denominator or erase the original variance. Show signed and absolute layer-valued differences, discoveries and incomplete lines separately. Any A-item accuracy target is an agreed customer policy, not a product result.

Adjustment Trend

Effective posted adjustment quantities and signed/absolute values by reason, site, posting period and original supplier/layer provenance. Trace bounded compensations once and retain original posting versus correction periods. Unknown supplier remains unknown; current primary supplier is not attributed to old layers. Standard-cost revaluations and accounting-only purchase variances are separate from physical shrinkage.

ABC Analysis

Rank positive trailing-12-month net eligible consumption value using the same SalesPick/InternalUsage and return basis as Turns, fixed valuation currency and disclosed complete-history window. Reviewed policy supplies cumulative cutoffs, deterministic ties and zero/negative-history treatment; proposed class changes require MasterChanges activation before altering count cadence. Internal relocations never increase velocity.

Expiry Report

Exact remaining lot/serial positions and layer values as of cutoff, split by owner/status and disjoint days-to-expiry buckets: expired, 0–7, 8–30, 31–90 and over90; no-expiry/unknown-expiry positions remain separately visible. Use the warehouse-local expiry cutoff; same-day expiration policy is explicit. Returns and later receipts preserve established expiry. Value at risk includes only owned stock; alerts and FEFO guidance do not prove a markdown, sale or quality disposition.

Roles and permissions

Inventory Manager

Owns inventory integrity, count coordination, stock decisions and the external accounting reconciliation.

Permissions and records
  • Prepare Products, ProductCategories, Warehouses, Bins, UnitsOfMeasure, ProductConversions, Suppliers, ReorderRules, StockAdjustmentReasons and StockSummaries assortment changes through MasterChanges
  • Prepare InventoryPolicies subject to independent Admin activation
  • Prepare and coordinate CycleCounts and PhysicalInventories, CountLocks and CountObservations
  • Approve StockAdjustments and count review only within explicit value authority and independently of requester, material editors and all counters for the target
  • StockSummaries
  • StockEvents
Warehouse Operator

Performs physical stock work and blind counts in currently assigned warehouses, with cost fields masked.

Permissions and records
  • Prepare GoodsReceipts and confirm actual receipt after protected cost/title checks
  • Prepare Issues and Transfers, reserve eligible stock and perform guarded pick, unpick, issue, transfer departure and destination receipt
  • Execute authorized ReturnAuthorizations receiving, restock, return-out or scrap after required decisions
  • Count assigned CycleCountLines and PhysicalInventoryLines through CountObservations, including independent assigned recounts
  • StockSummaries
  • StockMovements
Buyer

Follows replenishment in an external purchasing process and provides receipt cost and supplier context.

Permissions and records
  • Read Products, Suppliers, ReorderRules, StockSummaries, Inventory and receipt-only StockMovements
  • Prepare GoodsReceipts against external PO lines and confirm actual receipt when assigned to the warehouse
  • Review receipt cost and documented external valuation-currency conversion
  • Prepare vendor ReturnAuthorizations and external return follow-up but not authorize them
  • StockSummaries
  • StockMovements
Viewer

Reads current non-cost stock information for finance, sales or customer service without changing it.

Permissions and records
  • Read Products, ProductCategories, Warehouses, Bins, non-cost Inventory and StockSummaries within granted sites
  • View On-Hand by Warehouse, Low Stock, Out of Stock and Recent Receipts (last 7 days) including on-hand, allocated, available and receipt quantities
  • Supplier names and external reference display are limited to granted business scope
  • StandardCost, UnitCost, value deltas, layers, adjustment/count detail and inventory cost reports remain masked across UI, export and API
  • StockSummaries

Related processes

Issue and return stock

Claim eligible stock, record actual issue and resolve returns against source goods and reviewed value.

7 stages · 2 approvals

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