Inventory turnover and turnover: quantity, cost and movement of goods

Turnover statement and inventory turnover in Torgsoft: a detailed guide to analyzing quantity, cost, and product movement

In day-to-day retail operations, business owners regularly need to track the full lifecycle of goods: how many units were in stock at the beginning of the month, how many were received, how many were sold, and what remained in the end. Entrepreneurs often contact technical support and sales specialists with practical questions: how to view stock balances from a specific supplier on a certain date, why cost amounts differ between reports, and which tool to choose for a comprehensive analysis of product movement in both monetary and physical terms. Comprehensive answers to these questions require understanding the logic of three separate modes in the software: «Turnover statement by quantity», «Turnover statement by cost», and «Inventory turnover».

Basic concepts of warehouse analytics

To work correctly with the reports, it is important to understand the key terms used in Torgsoft:

• Turnover statement — a form for analyzing stock balances and product movement (by quantity or cost) on a specific date or for a selected period, with details of receipt and expense operations.

• Opening balance (At the beginning) — the actual quantity or cost of goods in the warehouse on the start date of the selected analysis period.

• Closing balance (At the end) — the actual quantity or cost of goods in the warehouse on the last date of the selected period.

• Receipt and Expense — groups of warehouse documents. Receipts include direct deliveries from suppliers, customer returns, and incoming internal transfers. Expenses include sales, write-offs, returns to suppliers, and outgoing transfers.

• Cost source — a setting that determines where the software obtains product cost data: directly from documents or from the warehouse status as of the transaction date.

Differences between the three modes: which report to choose

The software divides warehouse analytics into three separate forms, each designed for a specific management task.

1. Turnover statement by quantity

This mode is used to control the physical availability of goods. The form displays movement exclusively in units (or meters/liters). The table contains the following columns: name, SKU, barcode, opening balance, receipt, customer returns, transfers (both incoming and outgoing), sales, write-offs, returns to suppliers, closing balance, and total change.

 When to choose it? For preparing for inventory counting, checking the actual availability of goods on shelves, and monitoring transfers between stores in units.

2. Turnover statement by cost

This report analyzes the same warehouse processes, but exclusively in monetary terms — based on the cost of goods. The report columns are identical to those in the quantity statement, but instead of units, they display the cost amount at the beginning of the period, receipt amounts, sales amounts, and the final cost of the remaining stock at the end of the period.

 When to choose it? For financial control of the warehouse, calculating funds tied up in stock, and assessing the total value of warehouse inventory on a specific date.

3. Inventory turnover

This mode is the most comprehensive because it combines data from the «Turnover statement by quantity» and the «Turnover statement by cost».

 When to choose it? When the owner needs to perform a comprehensive management analysis — viewing both the quantity of goods in units and their monetary value on a specific date.

Analytics settings: filters, dates, suppliers, and accounting centers

The flexibility of turnover statements is ensured by the correct use of filters.

Selecting accounting centers (AC)

By default, the turnover statement opens for the current accounting center. However, an entrepreneur can select several accounting centers at once using multiple selection. The «Split by accounting centers» function is particularly useful. When activated, each product is displayed in the table as a separate row for each accounting center. This makes it possible to compare on one form how the same product moves across different stores in a retail chain.

Analysis by supplier on a specific date

One of the most common questions is how to view the remaining stock of goods from a specific partner. To do this, set the required date in the period filter of the turnover statement, then open the advanced product filter (the F12 button) and specify the required counterparty in the «Supplier» field. The closing balance column will then display the quantity or cost of goods only from this supplier as of the specified date.

Creating a product list manually

If there is no need to analyze the entire product range, the entrepreneur can select specific items in the «Warehouse status» form and click «Add to turnover statement». The software will ask which of the three reports (by quantity, by cost, or inventory turnover) the data should be transferred to, after which it will open the form containing only the selected list of products while ignoring the standard filters.

Dynamic characteristics

For deeper analytics, software updates have added the ability to include columns with dynamic characteristics (for example, size, color, or season) in turnover statements and inventory turnover reports. This is configured through an additional menu and significantly expands the analytical capabilities of the reports.

Working with cost: answers to common questions about discrepancies

Entrepreneurs often notice that cost amounts in the turnover statement may differ from the data in the «Analysis - Period» form or in write-off reports. These situations are expected and are explained by the software’s calculation algorithms.

The «Turnover statement by cost» and «Inventory turnover» forms contain the critically important «Cost source» filter. It determines where the amount is obtained from:

1. Warehouse documents — the cost is taken strictly from the records in the documents.

2. Warehouse status as of the document date — the cost is taken not from the document but from the warehouse status at the time of the operation.

3. Combined mode (set by default) — the software first looks for the cost in the document, and if it is missing for any reason, it takes the value from the warehouse status. This setting makes it possible to identify documents in which the cost was not recorded.

The «Analysis - Period» report calculates cost based on the overall warehouse status on the specified date. In contrast, the «Turnover statement by cost» calculates it directly from the values in the documents included in the specified period. For example: there was a receipt on March 17 (10 items at 100 UAH each) and another receipt on March 20 (10 items at 200 UAH each). The «Analysis - Period» report will show an average cost of 150 UAH (to match the warehouse status), while the turnover statement will take the amounts directly from the documents and show a total of 300 UAH.

If a product was sold while the stock was «negative» (before it was actually received into inventory), its receipt cost is zero. When the product quantity becomes negative, an incorrect cost appears in the turnover statement. To correct this situation, you need to analyze the product movement (for example, using the «Inventory turnover» form), find the point when the quantity became negative, and correct the goods receipt documents so that the balance becomes positive or zero, after which the cost must be recalculated. In addition, if the cost for the current period has not been recalculated by the user (manually or according to a schedule), it may be copied from the previous period and may not be populated in new outgoing documents. This is why regular cost recalculation is a mandatory condition for accurate financial warehouse analytics.

Comparison table of the three warehouse analytics modes for understanding everyday management tasks