on 03-11-2010 5:48 AM
HI,
Can you please let me know the logic used for calculating Inventory turnover in the report MC44.
Thanks,
Kiran Bodla
Hi,
When I executed the rpeort in double line and triple line it is showing usage(period) in PCS and Average stock in PCS and if you divide usage period/Average stock it gives the inventory turnover. In this case Inventory turnover will be in quantity.
But according to the two links mentioned by you it is specifying it is calculated on Value not on quantity.
Thanks,
Kiran Bodla
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SAP explains it inventory turnover calculation here:
http://help.sap.com/erp2005_ehp_04/helpdata/EN/c1/376198449a11d188fe0000e8322f96/frameset.htm
SAP evaluates based on quantity.
Hi,
Inventory Turnover = Cost of Goods Sold (COGS) / Average Inventory at value
If you are not familiar with the term Cost of Goods Sold, this is the cost of your revenues.
Check this link,
http://www.erpgenie.com/pp/1422-mc44--inventory-turnover-1
Regards
KK
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