Tips and Tricks: Using the Inventory Performance Report in Sage MAS 500

The Inventory Performance report shows inventory performance measures for finished goods, assembled kits, and built-to-order kits. The items are ranked based on performance.

The following five measurements are calculated for each item on the report:

• Gross margin: The sales amount minus the cost of goods sold amount divided by the sales amount over the last twelve months.
• Adjusted gross margin: The gross margin minus the cost of carrying the inventory (the average value) divided by the sales amount.
• Customer service level: The frequency that an inventory item is committed to stock in the past twelve months.
• Inventory turnover: The number of times the average investment in the item is sold.
• Return on investment: The comparison of the gross profit earned to the average inventory investment necessary to earn that profit over the last twelve months.

To generate the report, expand Inventory Management, Insights, and Reports. Double-click Inventory Performance. For more information or assistance with MAS 500, contact Blytheco by email, or give us a call at 800.455.1368, extension 2500.

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