The Sales/Inventory Dashboard displays the company-wide ratio of Sales to Inventory, enabling you to analyze sales dollars vs. carrying cost for your products.
Open this Dashboard as described in Review inventory KPIs
The Ratio is calculated using the following formula:
(12MonthTotalSalesData\12MonthAverageInventoryValue) * 12
The Inventory Value amount and Ratio are based on the inventory value of the product, not the average used for the calculation. These numbers are based on the Company Master: Pricing/Costing, Sales Order GP% Cost Column. For this reason, the values here may not match your Inventory Value Report.
A growing gap between inventory value and sales is an indicator of a potential cash-flow problem, as inventory purchases outpace sales and accounts receivable collections.
To review details about sales/inventory, click the View Detail button.
In addition to the Product Code (which you can click to open product details), Product Line, and Description, you will find details on:
- Ratio: The ratio of Sales to Inventory Value (12 Month Total Sales/12 Month Average Inventory Value x 12) for the product. Average Inventory Value is calculated based on the Sales Order GP% Cost Column specified under the Pricing/Costing tab in your Company Master. This column may appear blank if there is less than 12 months of inventory history for the product, or if either figure is equal to zero.
- Inventory Value: The total current inventory value of the product, based on the Sales Order GP% Cost Column specified under the Pricing/Costing tab in your Company Master. This value may not match the value displayed on your Inventory Value Report if you are using a different cost field.
- 12mo Sales: The past 12 months sales for the product.