Calculating Turnover

Turnover is Current Year COS / Current Year Avg Inventory

You can find the calculated turnover for parts by navigating to

Reports > Item Inventory > Item Metrics Report.

Current Year COS is pulled from the Past 12 Months COS column in the item metric report.

Current Year Avg Inventory is calculated by adding the current daily inventory over the past 12 months and dividing by the number of days (365).   This result is found in the Avg Inv. Past 12 Months column in the Item Metric Report.

So, if you had a part that was 0 on hand from last year until july, and then received 1 in august on the first, the calculation would be 0 (day 1) + 0 (day 2) + 0 (day 3) ... + 1 (aug 1) + 1(aug 2) + 1 (aug 3) ... + 1 (aug 31) / 365.  These are all dollar amounts, so in the previous example the part would cost 1 dollar.  So if your inventory values go negative for a period of days (as in one of your test parts), the average inventory could end up negative, which will give you a negative turnover.   Also, the counting of inventory days starts either 12 month previous OR when the first transaction took place on the part (this data is available on the metrics tab of the part).

Turnover and Average inventory are only for the last 12 months not including the current month.