New Report Launched! Inventory Fiscal Data

It took a little while. Over 30 files were edited and built. Now we are proud to say that we have a strong accounting backend in Stitch! We now automatically store all of your year-end fiscal data and provide very detailed fiscal reports which is exactly what you need for your taxes. We presented this information in such a way that it should be very easy for your accountant (if you have one) or you (if you do your own taxes) to fill out the necessary forms quickly and efficiently.

The Inventory Fiscal Report

All admins in your account will see a new report in the product reports area. This report is currently titled "Inventory Fiscal Report". When selecting this report the date span will automatically switch to "Fiscal Year". The first choice in the drop-down is "Year to Date" and after a fiscal year has been closed they will show up in the drop-down below.

Once the report is generated, three areas will appear. The top area provides an explanation of the report and the option to view detailed information about each metric presented. Below is a screenshot of the details which can be found on that page.

The second box is the total fiscal information for every product in your inventory. On the top right of this box there is an icon that looks like a spreadsheet which will allow you download the entire report with every product in your inventory individually broken out, as well as the total values.

Finally, in the 3rd box is additional data for every product and product line. Use the dropdown box on the top left to select the product line you wish to view. After selecting, the top section is the aggregate of all products within that line, while each row below that presents the data for each product within that line. The data presented are:

  • Line ID The ID of the product line.
  • Line Name The name of the product line.
  • Product ID The ID of the product.
  • Custom IDs The custom IDs that are associated with the product in addition to the numerical ID automatically generated by Stitch.
  • Product Options The options associated with the product. The first value is the option type and the following value is the option.
  • Units Sold The total units sold during the time period.
  • Percent of Total Units Sold The percent of units sold compared to the total number of units sold across all products aggregated.
  • Avg. Revenue / Unit The average revenue generated per unit sold. This value was calculated using the following equation: Revenue / Units Sold.
  • Revenue The total revenue generated during the time period. This value simply looks at each line of each order and determines the line revenue using the following equation: Price * Units Ordered. Each line is then added to determine the total revenue. Lastly, any additions or deductions of revenue from product reconciliations is added to the revenue bottom line to determine the final revenue value.
  • Percent of Total Revenue The percent of revenue compared to the total revenue across all products aggregated.
  • Avg. Unit Cost (Weighted Avg. Unit Cost) This is the weighted average unit cost of the product. This value is calculated by evaluating the stock of the product during each day of the year for current stock level at the time. Each time stock is added via a stock ordered the average cost is recalculated using the current stock level and the new stock added to it at its specified cost. In order to determine the current stock level all any given time all completed orders, received stock, and inventory reconciliations are used. Lastly, at the end of a fiscal year, the stock and average cost from a previous year is carried over as the start of the next fiscal year as a base point for the calculation.
  • COGS The Cost Of Goods Sold. To calculate the COGS the following equation was used: Avg. Unit Cost * Units Sold.
  • Avg. Profit / Unit The average profit generated per unit sold. This value was calculated using the following equation: Profit / Units Sold. Negative values of profit mean that the cost of the sale was actually higher than the revenue generated from the sale.
  • Profit The total profit generated during the time period. The following calculation was used to determine profit: Revenue - COGS. Negative values of profit mean that the cost of the sale was actually higher than the revenue generated from the sale which would result in a negative gross margin.
  • Percent of Total Profit The percent of profit compared to the total profit across all products aggregated. Negative values of profit mean that the cost of the sale was actually higher than the revenue generated from the sale.
  • Year End Stock The total stock at the end of the given time period. If evaluating data in the current fiscal year this value is the currently unsold stock. Negative values mean that with the given COGS calculation method there are more stock committed to orders in progress than are currently available in inventory.
  • Percent of Year End Stock The percent of stock compared to the total stock across all products aggregated. Negative values mean that with the given COGS calculation method there are more stock committed to orders in progress than are currently available in inventory.
  • Inventory Cost The total cost of inventory still in stock. This value can also be interpreted as the value of the stock if it was sold at the cost it was purchased at. This value was calculated using the following equation: Year End Stock * Avg. Unit Cost. If Year End Stock was less than 0, 0 was used in the calculation.
  • Percent of Total Inventory Cost The percent of inventory cost compared to the total inventory cost across all products aggregated.
  • Potential Revenue The total revenue that can be generated from remaining stock if it were sold at the same average revenue per unit as the preceding units sold. This value was calculated using the following equation: Year End Stock * Avg. Revenue / Unit. If Year End Stock was less than 0, 0 was used in the calculation.
  • Potential Profit The total profit that can be generated from remaining stock if it were sold at the same average profit per unit as the preceding units sold. This value was calculated using the following equation: Year End Stock * Avg. Profit / Unit. If Year End Stock was less than 0, 0 was used in the calculation. Negative values of profit mean that the cost of the sale was actually higher than the revenue generated from the sale therefore the potential profit is less than 0 because money is being lost in every sale.

Admin Setting: COGS Calculation Method

COGS (Cost Of Goods Sold)can be calculated in 6 different ways in Stitch because it is a fully functional order fulfillment system. Rather than limit you to one choice we decided to do the legwork on our end and calculate all 6 different COGS values for you but only present the one that you use. This way if you switch from accrual to cost based accounting, or visa versa, you can do it on the fly without effecting anything else you have done in your account.
Before implementing this part of the tool we spoke with multiple accountants to insure that the calculations we were making were correct and that the data was accurate. The six COGS calculation choices are listed below along with screenshots of the admin area where these can be viewed and edited:
  • COGS is calculated from completed orders only.
  • COGS is calculated from completed orders and orders currently in progress.
  • COGS is calculated from completed orders and invoiced products from orders currently in progress.
  • COGS is calculated from completed orders and invoiced products that have been paid for from orders currently in progress.
  • COGS is calculated from completed orders and packed products from orders currently in progress.
  • COGS is calculated from completed orders and packed products that have been shipped from orders currently in progress.

In the future we will be releasing more reports including reports to assist with inventory management. If there is a report not listed on your account and you would like to see it please let us know and we will be happy to assist you.

Click here to see the follow-on post to this one.

comments powered by Disqus

Grow Your Retail Business with Stitch

Learn How