Question

New Inventory Turnover by Items report flaws

Forum|Forum|1 year ago
June 25, 2025
2 replies
15 views

There seems to be flaws in the new "Inventory Turnover by Items" report. It uses the "Quantity on Hand" quantity to get the list from, however, it's not displayed in the column headings, so I had to add that column to the report, then I had to set the customized reports setting to only display items with a quantity greater than 0. The sort by default is the column Item, with the only other choices of Turnover ratio or Turnover Days. Neither of the Turnover types change the report, it's still sorted by the Item column. I want/need to see the other columns to be sorted: Qty Sold, Amount, and Turnover Ratio. I don't know how the Turnover days is calculated as we purchased CTL62 5/12/25, however, the report I see shows at 1,484 days. How can this be if we purchased it in May? I also see -147 turnover days for another unit. What does that number represent, bought, but not received?

QuickBooks Enterprise Suite

C

continea

Level 5

Good afternoon The Big Cahoona in CT,

Welcome to the QuickBooks Community! I will be happy to share some details here. Inventory turnover refers to the amount of time that passes from the day an item is purchased by a company until it is sold. One complete turnover of inventory means the company sold the stock that it purchased, less any items lost to damage or shrinkage.

However, I do see you have a large number of days. A high number of turnover days for a new product suggests there might be an issue with how the product's cost of goods sold or inventory levels are being tracked in QuickBooks. Therefore, there are a few troubleshooting steps you can take to assist:

Verify Initial Inventory:
Check the initial quantity of the new product entered in QuickBooks and ensure it's accurate.
Review Sales Transactions:
Make sure all sales of the new product have been properly recorded in QuickBooks.
Double-Check Calculations:
Verify the accuracy of the COGS and average inventory calculations for the new product.
Consult with an Expert:
If you're unsure about how to troubleshoot, consider contacting a QuickBooks expert or accountant for assistance.

Please let me know if the issue is resolved. I will be here, looking forward to your response. See you later.

Rainflurry

Level 11

@The Big Cahoona in CT

Inventory turnover ratio is your COGS divided by the average inventory for the period (report period, which appears to be a little over 8 years based on your screenshot). Inventory turnover days is 365 divided by the inventory turnover ratio:

Turnover ratio = COGS / average inventory for the period

Turnover days = 365 / turnover ratio

If your COGS is negative, that will cause both the turnover ratio and turnover days to be negative. Is that what you're seeing?

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