The Annual Turnover column on the Inventory
Turnover Report is calculated as the number of inventory periods in
the fiscal or calender year multiplied by the amount in the Number of
Turns YTD column, divided by the selected period. If warehouse transfers
are set to be tracked as issues in Inventory Management Options, all transfer
quantities are included in the Quantity Issued YTD column and is used
in the calculation of the Annual Turnover column.
The amounts in the Number of Turns YTD column are
calculated as follows:
If warehouse
transfers are not set to be tracked as issues, the calculation is
(Quantity Sold - Quantity Returned + Quantity Issued) / Average Inventory
If warehouse
transfers are set to be tracked as issues, the calculation is
(Quantity Sold - Quantity Returned + Quantity Issued + Quantity Transferred)
/ Average Inventory
For example, if the report is printed as of period
3, you would have the following calculations:
Beginning
Balance Period 1 + Change In Period 1 = Ending Balance Period 1
Beginning
Balance Period1 + Change In Period 1 + Change In Period 2 = Ending
Balance Period 2
Beginning
Balance Period 1 + Change In Period 1 + Change In Period 2 + Change
In Period 3 = Ending Balance Period 3
(Ending
Balance Period 1 + Ending Balance Period 2 + Ending Balance Period
3) / 3 = Average Inventory
