Open To Buy Report
These reports are useful for only a small number of Jewelry Shopkeeper
users. The approach is based on a) using purchase orders b) having
a fairly large lead time between orders and delivery c) having
a good idea as to the desired level of inventory in each major code.
This report can help you predict your open to buy dollar amounts
by category. You enter your standard target inventory levels for
each major class.
The amount you have open is projected for a short time in the
future based on a lead time for orders you might place today and
is calculated as:
Adjusted Target Inventory MINUS Current Inventory MINUS Inventory
Already On Order PLUS Projected Sales
You enter standard target inventory levels in the major class
code screen but depending on the time of year, you may wish to
enter a multiplier. e.g. this number would likely be greater than
1 for October through December (where you may want higher stock
levels) and may be less than 1 for other months (where you may
want lower stock levels).
Note that this multiplier is across-the-board. If you have
extreme seasonal variations needed in particular categories, you
may have to manually adjust those class codes' target levels as
needed. (e.g. while April might be a low inventory month, you
might want to disproportionally increase the amount of April
bridal merchandise, if your store typically requires that.)
The projected sales figures on this report are calculated by
summing sales from an existing month and multiplying the result.
For example, if at the end of September you order for the end of
October, you might use sales figures for August of the current
year and use a sales multiplier of 1.8 if October sales are
typically 1.8 times those of August. Or you might use sales
figures for the previous year's October and multiply by 1.1 if
this year is running about 10% higher than last year, etc.