Turnover Calculations Home | FAQs & Troubleshooting

 

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