You are probably focused on lowering your operating costs and increasing sales so you can increase your net income. The quality of your inventory management can have a direct effect on your results. Inventory is a big investment that requires great care. Dead stock not only ties up your money, it isn’t giving you the return you made the investment for in the first place.
You need to stock the inventory your customers need and keep warehousing costs low. To do that, you should take a look at the inventory tying up your money and make decisions about what to do. Have a sale? Dispose of dead inventory?
You can reduce the amount of time and money spent housing that inventory and maintaining it and the amount of money you are going to lose if that inventory eventually becomes worthless. When you can identify that inventory, you can lower pricing to blow out the remaining inventory before it’s a complete loss. Give your sales people incentives to sell this inventory and promote to your customers the items you are offering deals on.
Need to know what inventory is sitting in your warehouse that is just collecting dust and costing you money? Need to clear out old stock to make room for the items that you can actually sell?
Dynamics NAV can help!
There are a few reports and some data mining you can do to identify old inventory:
REPORT-Item Age Composition –Qty: this report shows item quantity in aging buckets so you can see what inventory is not moving.
Specify the End Date of the report: The report calculates backwards from this date and sets up 3 periods, allowing comparing for instance this year to the two previous years.
Period Length: suggest 1Y
Filter on the Location if needed
We recommend you save it to Excel.
REPORT-Item Age Composition –Value: same as previous but this report shows the value of the inventory that is not moving instead of quantities (not useful if you are using variants):
REPORT-Item Turnover report: Allows you to see what items are under or overstocked so you can make decisions about what items maybe should go on sale or what items need their re-ordering strategy tweaked to increase quantities available for sale.
Enter a date range and it shows quantity in stock, average inventory, inventory turns and annualized inventory turns:
Here’s options that aren’t a canned report:
In the search box type in ‘Item Ledger Entries’
Filter on Item Ledger Entries with a Remaining Quantity <>0. This show you only items still on stock.
Copy and paste the records into Excel and look at the Posting Dates to identify old inventory.
Better yet, contact your Dynamics NAV VAR and have them add a ‘Last Sale Date’ to the item card. You can use this field in reports like the Inventory Valuation and other reports that look at the item table, or you can filter your item list for items that have not been sold in the last year for example.