This report looks at current on-hand inventory, open sales orders, and open purchase orders. By comparing the available inventory balance to the average weekly demand you can determine whether you need to purchase or produce more of an item.
The current on-hand balance is defined as the on-hand inventory before any open sales orders, work orders, planned transfers, or other inventory commitments. Total demand is based on all open sales orders. The total purchase order balance is based on open purchase orders. The available balance is the current inventory less the total demand plus the total purchase orders. The weekly demand is calculated based on the sales of the items for the last four weeks. The inventory week and days-on-hand takes the available balance and divides it by the weekly demand.
A week is based on seven days.
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Security Required : Purchasing - Purchasing Reports
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