Reading and interpreting the Inventory Value report

The Inventory Value report translates your physical stock into financial figures. Understanding how value is calculated and what each column represents helps you track asset health and make informed decisions about purchasing and sales strategy.

How the report is organized

The report displays one row per item. Each row typically includes:

• Item Name — the name of the product.
• Item Code — the SKU or internal identifier.
• Quantity on Hand — the current count in units.
• Unit Cost — the cost per unit (how much you paid).
• Total Value — quantity × unit cost = the total value of this item in stock.
• Warehouse — the location (if showing multiple warehouses).

A Grand Total row at the bottom sums all item values.

How it works in Usystems

Value is calculated by multiplying quantity on hand by unit cost. The unit cost depends on your inventory costing method:

• FIFO (First In, First Out) — uses the cost of the oldest batch still in stock.
• Average Cost — uses the weighted average of all batches received.
• Last Cost — uses the cost of the most recent purchase.
• Standard Cost — uses a fixed cost you set (rarely changing).

Usystems applies the costing method consistently across the report, so every item shows the value based on your business's costing rules.

Why this matters

• Track asset value — your inventory is often your largest asset; this report shows its worth.
• Financial reporting — the total value feeds into your balance sheet as inventory asset.
• Spot overstock — items with high total values may indicate overstock positions worth adjusting.
• Monitor cash tied up — high-value inventory means cash is tied up; low turnover indicates potential waste.

Where you see it

• In the Reports section under Inventory.
• You can run it on demand or (if configured) schedule it to run automatically.
• The data may also feed into financial dashboards and accounting summaries.

Key insights to look for

• High-value items — focus reorder efforts on these; losing one unit costs more.
• Slow-moving, high-value items — consider adjusting orders or promotional pricing.
• Items with zero or very low unit cost — may indicate cost data is missing and should be updated.
• Comparison over time — run the report on different dates to see if total inventory value is rising (overstock) or falling (high sales).

---