RMS - Inventory Summary

Owned by Brian Au
Last updated: Nov 16, 2023
2 min read

What is Inventory Summary Report?

An Inventory Summary Report is a document that provides a concise overview of company's inventory movements during a period. It is a valuable tool for businesses to track and manage their inventory efficiently.

Why do we need an Inventory Summary Report?

  1. Sales and Usage Data: Historical data on item usage and sales, helping businesses identify patterns and forecast future demand.

  2. Turnover Ratios: Metrics such as inventory turnover ratio, which indicates how many times the entire inventory is sold and replaced over a specific period. This can provide insights into the efficiency of inventory management.

  3. Date of the Report: The date on which the inventory summary report was generated.

  4. Financial statements: This report provides information to build financial statements

How should we do it with Magestore Retail Management Software?

What does the Inventory Summary report include?

  • Opening Qty: The total product qty at the beginning of the selected period in the selected sources.

    • Opening Qty = the latest qty of the product before the day of the selected beginning date. (The new qty of this product in the last inventory movement before the beginning date)

  • Internal: Internal = Total Transferred Qty In - Total Transfer Qty Out in the selected sources during the selected period. (Received Date is during the Report Period)

    • Total Transferred Qty In = Total qty received to the selected sources.

    • Total Transferred Qty Out = Total qty sent from the selected sources.

  • Purchases: Purchases = Total product qty received in PO in the selected sources during the selected period. (Receive Date during the selected Report Period).

  • Sales: The total qty shipped - total returned to stock (when refunding a shipped product) (that generates an inventory movement) for the selected location during the selected period.

  • Adjust: All other adjustments to the product qty during the selected period in the selected sources.

    • Adjust = Ending Qty - (Opening Qty + Internal + Purchases - Sales).

  • Ending Qty: The total product qty at the end of the selected period.

    • Ending Qty = the latest qty of the product from 23:59:59 of the selected ending date to before.

  • Ending MAC: The Moving Average Cost of the product at the ending date.

    • Ending MAC = the latest MAC of the product recorded from 23:59:59 of the selected ending date. (The MAC of this product in the last inventory movement)

  • Valuation: The total value of all Qty on Hand for this product in the selected sources at the end of the period.

    • Valuation = Ending qty * Ending MAC.

  • Turnover Rate: Turnover Rate = Sold Qty x 2 / (Opening Qty + Ending Qty)