Inventory Aging Report

The Inventory Aging Report provides an analysis of the estimated age of the inventory that you have in stock, based on previous receivings done on the particular items. The accounting principle used in making these calculations is referred to as FIFO (first-in, first-out), which means that when an item is sold, the oldest inventory items (earliest purchased items) are considered as having been sold first.

Example: Product A has a current quantity of 7 which was received on 2 different dates:

1. Most recent receive date was 15 days ago with a received qty of 5.
2. The earlier receive date was 45 days ago also with a received qty of 5.
3. So the report will show that Product A has a qty of 5 with an inventory age between 0-30, and a qty of 2 with an age of 30-60.
4. Finally, it then provides an average inventory age based on the calculation of the sum total receiving of day /qty in stock. In the above example the calculation would be (5*15(most recent receive date))+(2*45(earlier receive date))/7 =23.57.