Get more insights: Analyze Inventory Ageing
In this blog post, I introduce you to the new Inventory Ageing Report in SAP Business ByDesign.
Warehouse Managers want to know how long the products remain in the warehouse to identify the slow mover products for which inventory costs might be high. For this, we offer now new inventory ageing reports – one for products located in the warehouse another one for pre-delivered or custodian stock.
The Report Inventory Ageing shows the age in days of the product quantities which remain in the warehouse or site. We offer a grouped view of the age e.g. quantities with age of 1-30 days, 31-60 days etc.
Based on the today’s date (actual execution on) and its stock for a product in a site, the age is calculated based on first in first out basis. Meaning, the last receiving confirmations and its quantities (up to the inventory quantity) are considered and shown in the report such as receipts from purchase orders, receipts from production confirmations, or inventory adjustments, etc. For each of this confirmations, the age is calculated based on the business transaction date.
Additionally, you can use 5 periods to group the quantities with certain age. For example, if you define in the selection area the ‘first period in days’ as 30 and the ‘second period in days’ as 60. The first key figure (group) will be displayed as ‘Quantity 1-30 days’, the second key figure (group) shows ‘Quantity 31-60 days’ etc. The last key figure (group) shows everything beyond the forth period ‘s number of days e.g. ‘Quantity > 120 days’. You can use the option to individually define the 5 periods in the selection pane e.g. 1-10 days 11-20 days etc.
If you want to analyze the inventory age in the past, you can do this by changing the filed ‘actual execution on’ in the selection area.
We recommend running this report always with a specific site or selection of products because data retrieval and calculation is quite cumbersome and might take some time.
In the characteristics section, you can add the detailed business transaction date which is the basis to calculate the age in days.
Furthermore, the confirmation type and ID give you more insights where this receipts originate from e.g. the warehouse confirmation of a receipt related to a purchase order.
A similar report is also available to check the inventory age for pre-delivered stock. You can identify how long products are in the customer’s or custodian’s procession without using them. This might be the basis to take appropriate actions, e.g. to request it back if not needed.
Inventory Ageing for pre-delivered stock – Details
For a system demo please check this video.