Inventory Turnover Rate per Period

Explanation

This activity is used to view turnover rates of inventory parts for a required period. The turnover rate is calculated by dividing the cost of goods sold (Issued Value) by the average inventory balance (Average Inventory Value). This ratio allows the planner or controller to see how frequently the company needs to replenish its existing inventory, based on part movements. 

Prerequisites

• The inventory transactions must have been aggregated before carrying out this activity.

System Effects

• The turnover rates per part can be viewed using the Inventory Turnover Rate per Period window.  

Window

Inventory Turnover Rate per Period   

Related Window Descriptions

Inventory Turnover Rate per Period   

Procedure

1. Open the Inventory Turnover Rate per Period window.
2. Select query option and the Select Statistics Periods dialog box will open.
3. Enter the required Year and Period for from-period.
4. The to-period will have the current year and the period as default values, which can be replaced.
5. Click OK and continue the query.

Note: The above procedure is valid for the populate option as well, if the currency used is the same.