Taking the pulse of price fluctuations within our inventories is critical to maximizing profits. As the cost of inventory items goes up, the sales price of the items may need to be increased as well. Or, it might be time to obtain bids or shop other wholesale vendors. Alternatively, lower purchase prices may provide an opportunity to offer "On Sale" items.
The Inventory Valuation with Price Trend and Reorder Point Excel Template is straightforward and easy to use, giving more time for the user to do the analyzing.
Inventory items can manually listed or values can be pasted into the template. A reorder point for the inventory items can be entered so that, once the inventory count is input, any items that fall below the reorder point will be flagged.
Instead of saving a separate Excel with counts and item costs for each month, the key to the usefulness of this template, is to re-use the template month to month, and update the costs in the month of the most current inventory.
Now you will be able to see the cost trends. The value of the inventory will calculate to the most recent cost entered, so that the inventory can be valued at the most recent values.
A heat lamp highlights the month to month cost shifts with green shades being the low costs and red shades highlighting the high range costs.