RMS - Inventory Status Report

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

What is Inventory Status Report?

An inventory status report is a document or summary that provides detailed information about the current state of a company's inventory. It is a crucial tool for businesses to monitor and manage their stock levels effectively. The report typically includes data on the quantity of each product or item in stock, its location, and other relevant details.

Why do we need Inventory Status Report?

  1. Optimizing Stock Levels: An inventory status report helps businesses maintain optimal stock levels. It provides insights into the quantity of each product in stock, ensuring that there is neither an excess nor a shortage of inventory. This optimization is crucial for cost control and efficient operations.

  2. Preventing Stockouts and Overstocking: By monitoring inventory levels, businesses can avoid stockouts (running out of products) and overstocking (holding excess inventory). Stockouts can lead to lost sales and dissatisfied customers, while overstocking ties up capital and storage space unnecessarily.

  3. Order Planning and Replenishment: The report assists in planning orders and replenishing stock at the right time. By setting reorder points and identifying reorder quantities based on historical data, businesses can streamline the procurement process and avoid disruptions in supply chains.

  4. Cost Management: Effective inventory management, facilitated by an inventory status report, contributes to overall cost management. It helps control costs associated with holding inventory, prevents unnecessary purchases, and improves cash flow by aligning inventory levels with demand

In summary, an inventory status report is a crucial tool for maintaining operational efficiency, meeting customer demands, and making strategic decisions that contribute to the overall success of a business.

How should we do it with Magestore Retail Management Software?

1. What does the Inventory Status report include?

  • Qty Committed: Total qty of the product that has been added to the fulfillment process in RMS in the selected sources of the product.

  • Qty Backordered: Total Qty Backordered in the selected sources of the product.

  • Available Qty: Total current Qty Available in the selected sources of the product.

    • Available Qty = Qty on Hand - Qty committed (for each source)

  • Qty on PO: Total Qty on PO in the selected sources of the product.

    • Qty on PO = Qty of products ordered but not received (PO status = In-progress)

  • Qty from Internal Transfer: Total Qty from Internal Transfer in the selected sources of the product.

    • Qty from Internal Transfer = Qty sent from another source to current source but hasn't been received

  • Qty in Transit: Total Qty in Transit in the selected sources of the product.

  • Reorder Point: Total Reorder Point in the selected sources of the product.

  • Preferred Stock Level: Total Preferred Stock Level in the selected sources of the product.

  • MAC: Moving Average Cost of the product in all sources. This cost will be recalculated for a product each time the company receives that product from a PO.

  • Last Purchase Price: The cost/stock unit in the lastest PO (PO with the latest confirmed date) of the product among the selected sources.

  • Last Purchase Date: The created date of the lastest PO (PO with the latest confirmed date) of the product among the selected sources.

  • Stock Value: Total Cost of all qty on hand of the products belonging to the selected sources = MAC (current moving average cost) * Qty on Hand.

  • Supplier: The supplier to create PO for.

  • Qty to Order: The suggested qty to create a PO for this product.

    • You can base on this to create a suitable PO for each product