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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.