Solved

How is dead stock calculated?

  • 7 February 2024
  • 6 replies
  • 197 views

Hey all!

I want to understand how the dead stock inquiry is calculated. We are in a manufacturing setting so our consumption of inventory are “issues” instead of sales. 

 

How is the “dead stock quantity” and the “In dead stock (Days)” calculated? 

 

Thanks for your help!

icon

Best answer by Kandy Beatty 8 February 2024, 16:41

View original

6 replies

Userlevel 3
Badge

When I was looking into this the other day I stumbled across the Acumatica Help for this. It may not provide an in-depth answer that you may be looking for though. 

“To calculate the quantity of dead stock items, the system deducts the quantity of items in sales orders (including field service orders and production orders), shipments, and other documents that affect the quantity on hand from the quantity of items that have remained in stock for the specified time period.”

Here is a link to the help - https://help.acumatica.com/(W(3))/Wiki/Print.aspx?pageid=953e62d9-48ef-45d0-a9ce-559aa8d29ffb

 

Userlevel 1

What problem are you trying to solve? 

Are there raw materials that are being classified as dead stock when they shouldn’t be?  

What problem are you trying to solve? 

Are there raw materials that are being classified as dead stock when they shouldn’t be?  

I am trying to figure out how the inquiry calculates the quantity in deadstock field. I know that the “In dead stock (days)” is the average number of days that it takes for an item to go from received to transacted (invoice, issue, adjustment, etc.). How does it then calculate the quantity that is in dead stock? 

 

Also, is there a way that you can exclude adjustments in the calculations in this inquiry but keep it in other calculations in other inquiries (ex. turnover report)?

Userlevel 1

I found this thread from 2 years ago that might shed some light on the raw materials. 

I’m not qualified to give you more clarity on the calculation and if it uses consumption history to calculate dead stock, it could get tricky with dependant demand. What would happen if  there are finished good items that are in excess and lets say you have 6 months stock with a 7 day manufacturing lead time. The finished goods might be selling steadily, but the consumption of the raw material might stop, as there is no manufacturing required. Would these items then run the risk of being flagged as dead stock? 

Hopefully someone else can give you more clarity.   

Userlevel 7
Badge +16

HI @Cshanlon525 

I did a Community Webinar on Dead Stock:

https://community.acumatica.com/acumatica-community-power-users-179/recording-acumatica-community-webinar-inventory-optimization-with-acumatica-inquiries-tue-mar-14-2023-15024?tid=15024&fid=179

 

Here is exactly what the help defines dead stock as:

To calculate the quantity of dead stock items, the system deducts the quantity of items in sales orders (including field service orders and production orders), shipments, and other documents that affect the quantity on hand from the quantity of items that have remained in stock for the specified time period.

The following rules apply to the stock items that can be listed on this inquiry form:

  • If the Cost Separately check box is selected on the Locations tab of the Warehouses (IN204000) form for a warehouse, the system calculates the cost of an item for the warehouse, not for the location.
  • If a stock item has subitems, the system shows information without subitem details.

HI @Cshanlon525 

I did a Community Webinar on Dead Stock:

https://community.acumatica.com/acumatica-community-power-users-179/recording-acumatica-community-webinar-inventory-optimization-with-acumatica-inquiries-tue-mar-14-2023-15024?tid=15024&fid=179

 

Here is exactly what the help defines dead stock as:

To calculate the quantity of dead stock items, the system deducts the quantity of items in sales orders (including field service orders and production orders), shipments, and other documents that affect the quantity on hand from the quantity of items that have remained in stock for the specified time period.

The following rules apply to the stock items that can be listed on this inquiry form:

  • If the Cost Separately check box is selected on the Locations tab of the Warehouses (IN204000) form for a warehouse, the system calculates the cost of an item for the warehouse, not for the location.
  • If a stock item has subitems, the system shows information without subitem details.

Awesome, thanks for your help!

Reply


About Acumatica ERP system
Acumatica Cloud ERP provides the best business management solution for transforming your company to thrive in the new digital economy. Built on a future-proof platform with open architecture for rapid integrations, scalability, and ease of use, Acumatica delivers unparalleled value to small and midmarket organizations. Connected Business. Delivered.
© 2008 — 2024  Acumatica, Inc. All rights reserved