Investigating Cost & Variance Product Growth
This articles provides insight and investigation tips to cost and variance product growth.
What does N/A mean in the Days on Hand column of the Cost and Variance report?
When Actual Usage is negative, this indicates that you have grown the product.
Beg Inv + Purchases – End Inv
When Days on Hand is calculated using negative Actual Usage Units, the result would be negative. Instead, it is displayed as N/A.
End Inv / ( Actual Usage in Ending Inventory Week / Days in Ending Inventory Week )
What is Product Growth?
Definition
Simply put, product growth is negative usage; when the difference of ending and beginning quantities for any given period is greater than the amount of product received in purchases for the same time period. This is in contrast to the usually expected positive usage where the difference between inventories is covered by purchased quantities.
Calculation
See below for examples of how the Cost of Goods Sold calculation can end in negative usage
Cost of Goods | Beg Inv | + | Purchases | – | End Inv | = | Actual Usage |
---|---|---|---|---|---|---|---|
Example 1 | 10 | + | 5 | – | 20 | = | -5 |
Example 2 | 10 | + | -10 | – | 10 | = | -10 |
Example 3 | 0 | + | 0 | – | 20 | = | -20 |
Table of Contents
- 1 What does N/A mean in the Days on Hand column of the Cost and Variance report?
- 2 What is Product Growth?
- 2.1 Definition
- 2.2 Calculation
- 3 Where would I see this in reporting?
- 3.1 Cost and Variance
- 3.2 IvA
- 3.3 TvA
- 4 How can I correct this?
- 4.1 Inventory
- 4.1.1 Review Posted Inventories
- 4.1.2 Prepped Item Conversions
- 4.1.3 Changing an Inventory Count
- 4.1.4 Skipped Inventories
- 4.2 Purchases
- 4.2.1 Received Orders
- 4.2.2 Bid File Multipliers
- 4.2.3 Waste
- 4.1 Inventory
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