How to Calculate Stock Turns in Unleashed, With the Formula and a Worked Example

Before you start

• Unleashed's formula is Stock Turn = Current Cost Of Goods Sold / Average Inventory Cost. It works per product.
• Current Cost Of Goods Sold is the sum of all Sales less the sum of all Credits during the past year up to today.
• Average Inventory Cost is ((last year's on-hand quantity x last year's Average Landed Cost) + (today's on-hand quantity x today's Average Landed Cost)) / 2.
• The Stock On Hand Enquiry shows Qty On Hand and Avg Cost as they were at the end of any date you pick, so you can look up both years in one report.
• The Transaction Enquiry only includes completed transactions. Never Diminishing Products don't appear in it, so they have no stock turn.
• The Reorder Report, which has a ready-made Stock Turns column, is not available on Lite. On Lite, use the manual steps below.

Stock turns depend on Average Landed Cost, so wrong costs give a wrong answer. See How to work with average landed cost in Unleashed first if your costs look off.

Step 1: Find the product's cost of goods sold for the past year

1. 1Go to Reports > Inventory > Transaction Enquiry.
2. 2Enter the product in Product Code, and set the dates to cover the past year up to today, the period Unleashed's formula uses.
3. 3Set Transaction Type to Sales Shipment and click Run. Note the Total Value in the footer. It shows as a negative number; use the positive figure.
4. 4Change Transaction Type to Credit and click Run again. Note that Total Value.
5. 5Subtract the Credit total from the Sales Shipment total. This is the product's Current Cost Of Goods Sold.
6. 6Alternatively, use the Cost column in Reports > Sales > Margin Enquiry for the last 365 days. This only works if every dispatched Sales Order from that period has been completed, because the Margin Enquiry only lists completed orders.

Step 2: Find last year's quantity and Average Landed Cost

1. 1Go to Reports > Inventory > Stock On Hand Enquiry.
2. 2Enter the product in Product Code and set Date To to today's date last year.
3. 3Click Run.
4. 4Note Qty On Hand (last year's on-hand quantity) and Avg Cost (last year's Average Landed Cost). If the product had no stock then, both are 0.

Step 3: Find today's quantity and Average Landed Cost

1. 1In the same Stock On Hand Enquiry, set Date To to today and click Run.
2. 2Note Qty On Hand and Avg Cost again. You can also check today's Average Landed Cost on the Cost tab of the product record.

Step 4: Do the calculation

1. 1Multiply last year's Qty On Hand by last year's Avg Cost.
2. 2Multiply today's Qty On Hand by today's Avg Cost.
3. 3Add the two results and divide by 2. This is the Average Inventory Cost.
4. 4Divide the Current Cost Of Goods Sold from Step 1 by the Average Inventory Cost. The result is the product's stock turn for the year.

Step 5: Check it against the Reorder Report (Core and Pro)

1. 1Go to Reports > Purchases > Reorder Report.
2. 2Click Show Toolbar, then Hidden Columns, and drag Stock Turns into the grid.
3. 3Set the warehouse filter to Global. The Stock Turns column is only shown for Global.
4. 4Click Run and compare the figure with your own calculation.

Unleashed's Reorder Report article describes the Stock Turns column as the average number of days it takes to use up a product's stock. Its Calculating Stock Turns article, though, matches the column to the ratio (6.3 for JAM JAR). If the column is unclear for a product, work it out by hand with Steps 1 to 4. For using the rest of the report, see How to use the Reorder Report to replenish stock.

If something doesn't look right

• The Sales Shipment total is negative: that's expected. Use the positive figure.
• The Margin Enquiry cost is lower than the Transaction Enquiry: some dispatched Sales Orders aren't completed yet, so the Margin Enquiry leaves them out.
• The Stock Turns column is missing or blank: the warehouse filter isn't Global, or your plan is Lite.
• The product was new this year: last year's quantity and cost are 0, which halves the average and makes the stock turn look high.
• Avg Cost is 0: stock may not have been receipted correctly or wasn't on hand. Fix the cost before relying on the result.

Where Unleashed leaves the work to you

• The manual method works one product at a time. For many products, you export the enquiries to CSV or XLSX and do the arithmetic in a spreadsheet.
• The formula uses two points in time, a year ago and today. A product that was stocked up or run down in between can give a misleading figure.
• Unleashed gives you the number. Deciding which products turn too slowly, and what to do about them, is your call.
• The result is only as good as your receipted costs, landed costs and completed orders.

Where Logistify fits

Logistify doesn't calculate stock turns or build reports in Unleashed. It works earlier in the chain: the Sales Order Service enters customer orders that arrive by email, PDF, Excel, EDI and other channels into Unleashed as sales orders, so sales aren't waiting in an inbox to be keyed. Its order demand check also flags lines well above a customer's usual quantity before they become a sales order.