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Hi!
I have tried to dig in documentation and help files, but cannot find answer to this specific question. Does anyone have the formula for how the system calculates and set the movement class for a stock item when running the Update Movement Class(IN506100)? I remember seeing the formula in older documentations, but can't find those anymore and seems to not be included in the newer documents.
Here is an old help file that documents movement classes and the formula that it uses to calculate turns.
Thanks! I'll have a look
Does anyone have any more information on the formula? it looks like the link is no longer active. I have a client looking for additional calculations to try and nail down the movement class even further. Thanks!
Thanks Tim. I was able to get to the current help, but I wasn't sure if there was more details in a previous version besides :
- For each warehouse, the system arranges inventory items in decreasing order by their average turnover rate in this warehouse (
Quantity Sold during a turnover period/ Average Quantity
). TheAverage Quantity on Hand
is calculated as a sum of on-hand quantities at the end of each last 12 periods divided by the number of periods in the last financial year, including the analyzed period. - For each item starting from the item with the highest turnover rate, the item’s turnover rate is compared to the thresholds (maximum turnover rates) defined for each movement class. If the item’s turnover rate is less than or equal to the lowest threshold, the item is assigned to the appropriate class. If the item’s turnover rate is between two successive thresholds, that is, less than threshold of the class N and greater than or equal to the threshold for the class M, then the item is assigned to the class N.
Client was looking for an equation to be able to validate the turns. They have 6 turns, so they were wanting to see exactly how it calculated.