Stock Ageing

Stock Ageing groups the stock of each item into age buckets such as 0 to 30, 30 to 60, 60 to 90 and over 90 days, with quantity and value per bucket and an average age. Age is measured from the date each lot came in, following the FIFO queue the Stock Ledger keeps for every item regardless of valuation method, so stock that was sold is assumed to be the oldest and what remains is dated by the latest receipts. Old stock is cash sitting on a shelf, often obsolete or near expiry; the report finds it before the auditor asks whether inventory should be written down. A Stock Reconciliation at a lower rate records that write down.

Age of remaining stock = report date - receipt date of each unsold FIFO lot; average age weighted by qty

1. 01Go to Stock > Stock Ageing.
2. 02Set Company, To Date and the Range values that define the buckets, such as 30, 60, 90.
3. 03Filter by Warehouse, Item Group or Brand to focus on one range.
4. 04Read Average Age and the quantity in the oldest bucket for each item.
5. 05List items with most value in the oldest bucket and decide on discount, return or write down.
6. 06Post the write down with a Stock Reconciliation at the reduced rate.

Open to find slow moving stock tying up cash.

Items untouched since the Rs 4,50,000 opening stock fall in the oldest bucket.