What is an aged stock report?

Asked 2 years ago

What does it mean when you have aged inventory, and how do you run a report on it?

Stock report Aged stock Inventory management Aged inventory

Damian Orr

Wednesday, March 23, 2022

Aged inventory is a term that describes products that are either in very low demand and slow moving, or barely sell at all. It goes without saying that these products will adversely affect both a company's financial viability as well as its inventory management.
An aged stock report will allow you to view these products and assist with future inventory management.
Typically, the report indicates the number of days a product stays in the storeroom or warehouse, beginning on the date it was received.
To run a report on aged inventory you will need to use the following formula:  average inventory age = (average inventory cost ÷ cost of goods sold) x 365. 