search-icon

The Inventory Velocity Report shows information about each SKU, including its sales velocity, the number of available items in stock, the forecast sale period for each item, and an option if the item needs to be reordered once again.


This report can be scheduled to run automatically in the Report Scheduling module and delivered to your inbox.


NOTE: The Inventory Velocity Report is not available for DEAR business accounts that have been cancelled or are in arrears. In these cases, the Inventory Velocity Report page will show the last generated report, if any.


Prerequisites


Table of Contents


Data from this report can be exported in Excel, PDF or RTF format. 


Report input and output

[back to top]


Input:

Reporting PeriodAllows the user to select the time period from a list of options.
Recommended ActionFilters report results by recommended action (Specify reorder quantity, Reorder product, Inventory product is OK, All). See Important information for calculations. 
LayoutSet to the Default layout. Allows selection of saved layouts, if any. 
Save Layout AsAllows saving a layout for potential future use.
Reset LayoutResets the layout to the default layout or selected saved layout.



Output:

Fields
Location    Name of the location
SupplierName of the supplier
Product NameName of the product
Product SKUSKU number of the product
ActiveIndicates if the product is active
On B2B portalIf the product is listed in the B2B portal = True.
If the product is not listed in the B2B portal = False.
On Sales ChannelsIf the product is listed in Sales Channels = True.
If the product is not listed in Sales Channels = False.
ComponentIf the item is a component in the BOM = True.
If the product is not a component in the BOM = False.
Finished GoodIf there is a BOM for the product = True.
If there is no BOM for the product = False.
Last SaleDate of last sale
Date AddedDate of 1st movement in DEAR
Days Since AddedNumber of days since the product was added to DEAR
Data Headers
AvailableThe number of available units.
If the number of available units + awaiting units < 0 and reorder quantity is specified for a product, then the recommended action for the product = reorder, even if velocity=0.
On HandQuantity of units on hand
Units SoldThe number of products sold in the last 7/14/30/60/90 days
Shipped Per DayProducts shipped per day
VelocityUnits sold per day based on movement from the last 7/14/30/60/90 days.
Computed as {Quantity of items sold for the reporting time} / {reporting time}.
Quantity of items sold for the reporting time is the sum of sold items in Sale, Assembly, Disassembly, and Write-off tasks.
Even if velocity = 0, if the number of available units + awaiting units < 0 and reorder quantity is specified for a product, DEAR will recommend reordering the product.

NOTE: Items that have been first added to inventory part way through the recording period have a different logic. Velocity value is instead calculated as {Units Sold}/{number of days since product was first added to stock or first stock movement}. See Important Information
Days to ZeroExpected number of days until the inventory of the product becomes zero. Computed as {available units} / {inventory velocity}.
Available units value is taken from the Available column.
On OrderQuantity of items not yet received from all authorised POs.
Lead StockExpected number of days between opening and submitting the PO to the supplier and receiving the stock
Safety DefinedPreferred minimum number of days of inventory (safety stock)


Important Information

[back to top]


Every time the report is generated, the data for the previously generated one is written over. Only users with active Reporting permissions can generate the report. See User permissions explained and Managing Users and Roles for more information about permissions. 


If you have an active Report Scheduling module, the Inventory Velocity Report can be scheduled to run using the module. 


The Inventory Velocity Report shows information about each SKU, including its sales velocity, the number of available items in stock, the forecast sale period for each item, and an option if the item needs to be reordered once again.


  • When computing for the Product Reorder Quantity, DEAR considers the following:
    • The Reorder Quantity value under the Suppliers tab on a product's details page.
    • If the Reorder Quantity is not specified for the Supplier+Location combination under the Suppliers tab, the system gets the Reorder Quantity for a specified location from the Reorder Levels tab instead.
    • If the Reorder Quantity is not specified for the location under the Reorder Levels tab, the system gets the Reorder Quantity from the product's Details page.
  • When computing for the Minimum before Reorder Quantity, DEAR considers the following: 
    • The Minimum Before Reorder quantity under the Reorder Levels tab on a product's details page.
    • If the Minimum before Reorder quantity is not specified for the product, the system gets the Minimum before Reorder quantity from the product's Details page.
    • The Minimum before Reorder quantity that is set up under General Settings → Purchase Process Customisation is not considered in the computation.
  • The Minimum Before Reorder quantity on a product's Details page and the Minimum To Order quantity under the Suppliers tab are different from each other.
    • Minimum Before Reorder is part of the final Reorder Quantity formula, i.e. Reorder Quantity = Product Reorder Quantity + Minimum Before Reorder - Available - On Order.
    • Minimum To Order prevents you from ordering anything less than the stated quantity from a particular Supplier.
  • If Velocity is not 0, Reorder Date = Today + (Days To Zero + On Order/Velocity - Lead Stock - Safety Defined) days
  • If velocity is 0 and number of available units + awaiting units < 0, Reorder Date = Today


Inventory Velocity Calculation:

Velocity is calculated as Units sold per day based on movement from the last 7/14/30/60/90 days.

  • Computed as {Quantity of items sold for the reporting time} / {reporting time}.
    • Quantity of items sold for the reporting time is the sum of sold items in Sale, Assembly, Disassembly, and Write-off tasks.
  • Items that have been first added to inventory part way through the recording period have a different logic. Velocity value is instead calculated as {Units Sold}/{number of days since product was first added to stock and also number of days since the FIRST product movement}
    • Go to Inventory → Products → [select product] and the Movements tab to examine a product's movements. 
  • Example:
    • A user runs the Inventory Velocity Report on the 08/10/20. Product A has 64 items sold, and the report is set for 30 days, so the user expects to see  a velocity of 2.13. (64/30). 
    • However, the first product movement was on the 28/09/20. The product has 10 days since the first movement. In this case, DEAR will take 64 items, and divide by 10 days to get an inventory velocity of 6.4.  


Run the Report via the Inventory Velocity Report Page

[back to top]


To run the Inventory Velocity Report via its own report page:

  1. Go to Reports → Sales Reports, then click Inventory Velocity Report. 
  2. On the Header section of the Inventory Velocity Report page, the report interval is set to 7 days by default. You may change this to 14, 30, 60, or 90 days, depending on your requirements.
  3. On the Layout section of the Inventory Velocity Report page, select the report layout. It is recommended that you leave the default selection as is, though you may also create your own report layout.
  4. The Recommended Action column is filled after the report is calculated. If the product's reorder date is due, or the number of available units + awaiting units < 0 and reorder quantity is specified for a product, this is set to Reorder Product, even if Velocity=0. You can then click the link to go to the Reorder Suggestion page (see Reordering from the Reorder Suggestion Page). If the product's reorder date is not due yet, the column displays Inventory is OK. 
  5. Click the Mailing List button, select either All locations or a specific location, select the mailing lists for the Reorder Suggestion email, then click Save to save the mailing lists.
  6. Click the Upload Report button at the top to run and display the report on the page. This also sends the Reorder Suggestion email to the mailing lists that you set up in Step 5.


NOTE: You must set up your mailing lists before you can specify the recipients for the Reorder Suggestion email.


Run the Report via the Scheduling Module

[back to top]


If you have an active Report Scheduling module, you can run the Inventory Velocity Report from the module.

  1. Go to Reports → Sales Reports, then click Inventory Velocity Report. 
  2. On the header section of the Inventory Velocity Report page, click the Scheduling icon.
  3. Enter, then select the report name from the list, then click Next.
  4. On the next page, choose the layout for the report, select the desired report interval (7, 14, 30, 60, and 90 days) from the list, then click Next.
  5. Select a start date, frequency, mailing list, and report format from the lists.
  6. Click Save. The report will then be run depending on the start date you specified in Step 5.


NOTE: You must set up your mailing lists before you can specify the recipients for the Reorder Suggestion email.


After generating the Inventory Velocity Report, you can rerun the report from the Inventory Velocity Report page at any time by clicking the Upload Report button. This overwrites the previous report.


FAQs

[back to top]


Why are deprecated SKUs showing in the Inventory Velocity Report?

When stock is still available it will still show deprecated products in the report. Only when the stock is 0 will these products no longer show in the Inventory velocity report.


The numbers in the Inventory Velocity Report are not making sense. What could be wrong?

Check first that lead, safety and reorder quantity of the products are correctly configured.


We have a couple of products that are the base product for many other sale items. We have created BOMs for these and in terms of stock control it works fine. The problem we have is the sales of the final product are not linked to the base product and so hey do not get properly reported in the inventory velocity or low stock reports. Can you please advise me how best to set this up?

The inventory velocity report does not currently have the ability to show movement of components from the finished goods details. This will be addressed in our Demand Driven Manufacturing release, scheduled for later this year (2020). 


I am getting two different figures between the Inventory Velocity Report and the Product Availability Report can you please explain why? 

The quantity shown in the inventory velocity report in fact matches the quantity shown in the product availability screen. However, as the Velocity report is designed for product re-ordering it shows quantities based on suppliers and locations. So the correct quantity is only reflected in the figures for each line of each column. In the case of multiple suppliers,  the report will take into account lead times, safety levels, reorder quantities, and minimum re-order quantities for each supplier and each location  and identify the most efficient supplier from which to re-order the product.


Hi, does the new inventory velocity report take into account only sales, or all stock movement? 

I have a client which tracks consumption of packaging materials via stock adjustments. Will stock adjustments be used in the calculation of the rate of stock consumption?

Stock movement is not recorded in the inventory velocity report. The Inventory Velocity Report takes only sales into account. 


When running an inventory velocity report I want to know if a product is sold as its own SKU and also is a component of a BOM, do both numbers get reported? or example, BLACK-A (SKU) is sold as an individual product as well as a case of 6, PDACASEBLK (SKU). If we sold a quantity of 10 of BLACK-A and a quantity of 10 of PDACASEBLK, we have sold a total quantity of 70 of SKU BLACK-A. I am wondering if the velocity report works like that or do I have to search for each SKU individually. 

If you have an SKU which is sold as it is and is also a component for a BOM with reference to your example then the Sales on the inventory Velocity Report for SKU BLACK-A will reflect 10 units sold and SKU PDACASEBLK will reflect as 6 units sold. 


As a workaround, you can run Sale by Product Details Report to check the sold units for the SKU and to check how many are used in assemblies, and run Finished Goods Analysis Report and see usage of the component in assemblies.


Can you advise me how we can deal with spikes in sales in the Inventory Velocity Report? ie. can we adjust sales velocity to remove or readjust for certain spikes of sales that happen in a certain period?

It is not possible to manually amend the Sales velocity. It takes the value from the sold units. 


After checking the velocity report, the velocity calculations seem wrong. The reporting period is 14 days, but some velocity values do not divide the units sold by 14. This only happens with some items. Is there a setup problem with the data or is there a problem with the velocity report?

When the Velocity value is calculated, we calculate it as {Units Sold}/{X}. {X} is usually the reporting time (14 days in this case), or it can be the number of days since the product has been added to Stock first time, if it was added recently. If the velocity calculation looks to be divided by another number, check if that product was recently added to your inventory. 


Still no answer to your question? Please do not hesitate to get in touch with DEAR support.

Did you find it helpful? Yes No

Send feedback
Sorry we couldn't be helpful. Help us improve this article with your feedback.