Running the Inventory GMROI Report

Use the Inventory GMROI Report to analyze your sales for any 365-day period and display information that helps you analyze your return on investment.

The report displays the following indicators, which can help you analyze your return on investment:

Indicator	Description
Turnover	The rate at which you move items in and out of your inventory.
Average markup %	The average percentage markup on the products sold.
GMROI	A calculated number that represents the percent you will have at the end of one full year for each dollar of average inventory investment during that year.
Adjusted margin percent	What it costs you to carry the inventory. Click here to view an example that explains the relationship between the GMROI and the adjusted margin percent.

We recommend that you run the report first in summary mode for all price and buy lines. Make this first pass each month to identify your lowest adjusted margin and your highest investment lines. Then run the report in detail mode for lines you identify with problem products.

For more information on how the system calculates this report, see How the System Calculates Gross Margin Return On Investment (GMROI).

To run the Inventory GMROI Report:

From the Reprts > End of Month Reports #2 > GMROI Reports menu, select Inventory GMROI Report to display the Inventory GMROI Report screen.
In the Line Type field, identify whether to run the report for price lines or buy lines. Based on your selection, the system renames the Prc Line/Buy Line field and the Prc Line/Buy Line hot key accordingly.
In the Prc Line/Buy Line field, do one of the following:

To run the report for one price line/buy line, enter the price line/buy line ID.
To run the report for all price lines/buy lines, leave the field blank.
To run the report for multiple price lines/buy lines, use the Prc Line/Buy Line hot key to display the Price Line Selection/Buy Line Selection screen. Enter the ID of each price line/buy line to include on the report and press Esc. *Multi* displays in the Prc Line/Buy Line field.

If you run the report for super buy lines that contain other buy lines that you have added to the report, the system double counts the buy line. To prevent a grand total with double counts for super buy lines, create a recall list of buy lines that excludes any super buy lines.

Note: This report runs for only primary buy lines. Secondary buy lines are excluded from the report.

In the Branch(es) field, enter the branch, branches, or territories to include in the report.
Change the dates in the Start Date and End Date fields, as needed, to encompass a 365-day period for the current fiscal year.

By default the system populates the Start Date field with the first day of the current fiscal year as the start date and the current date as the end date. These fields also support variable dates.

In the Summary/Detail field, enter one of the following to determine the report level of detail:

Summary – Produces GMROI totals at the product line level, without product descriptions.
Detail – Includes product descriptions and totals for each product.

In the Buyer field, to run the report for buy lines assigned to a specific buyer, enter the buyer's name.
In the Buyer Branch field, enter the number that identifies a buyer branch for which to run the report.
In the Cost Basis field, select the Global Basis code to use to calculate the values for the Cost and Avg $OnHand columns of the report. The default value is Cost of Goods Sold (COGS-COST).

If you select the Avg Cost option, the value in the Cost column is calculated by dividing the amount in the Actual COGS$ column of the report by the number of orders. The value in the Actual COGS$ column is calculated using the actual cost of goods on the order.

In the Break on field, select one of the following:

If the Line Type is Prc, the system assigns Price Line. This inserts a page break after each Price Line on the report.
If the Line Type is Buy, indicate whether to insert a page break after each Buy Line or after each Buyer.

In the Product Status field, enter the type of product for which to run the report. Stock is the default value.
In the Include Display Location Type (Y/N) field, to include products with a product location type of Display on the report, type Y; otherwise, type N.
In the Print Selected Product Rank Subtotals (Y/N) field, to include selected product rank subtotals on the report, type Y; otherwise, type N. Use the Product Rank hot key to select inventory rankings to match for the report.
In the Commodity Code field, enter a commodity code for which to run the report. Use the Multi hot key to select more than one commodity code.
In the Include Transfer Sales In Calculation Of GMROI field, indicate if you want to include, exclude or run the report only with the transfer sales included in the report calculation.
Use the Product Rank hot key to include the report data by product rank.
Set options, if needed, and generate the report.

If you use the Print or Hold menu options, depending on your authorization level, the system may prompt you to choose whether to view generic (commission) costs, cost of goods sold, or no costs on the report. Select an option to run the report.