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The analytical app displays the Key Performance Indicator (KPI) Inventory Turnover. You can determine how often the average material was destocked and restocked in a specific time frame. A high inventory turnover indicates that materials are not in storage for a long time and that storage costs are low. With this KPI warehouse managers receive important information about special materials or material groups.

Note that Inventory Turnover is the reciprocal value of Days Inventory Held.

Key Features

  • Calculation rule:

    Inventory Turnover is the relation between the average consumption divided by the average valuated stock value.

    The average consumption is the total consumption divided by the number of days within a specific time frame.

    The point in time, in this case, the day on which a business process took place, is important to determine its share in the calculation result. This includes the calculation of average values and quantities.

    To get a realistic calculation of averages for all average inventories, a specific weighting approach is used in the Inventory Management KPIs: for the calculation of each business process, such as a goods receipt, the posting date is considered in relation to the number of days within the specific time frame. The posting date of the business process itself is considered with half a day.

    Example Example

    The weighting factor for a goods receipt that increases the stock at the end of the specific time frame is lower than for a goods receipt that was posted at the beginning of the specific time frame.

    End of the example.

  • Generic drill down:

    You can use the following measure: InventoryTurnover.

  • Corresponding Query view: sap.hab.r.ecc.MaterialValStockValueTurnoverQuery

    Displays the inventory turnover based on the current valuated stock value within a specific time frame.

    Note Note

    The function Multidimensional Reporting for this query view is not available for generic SAP clients. That means that this query view cannot be used for other SAP Smart Business Apps.

    End of the note.

  • KPI type: rate

  • Dimensions:

    • Input parameters: SAP client, start date, end date

    • Filter: company code, plant, material, material type, material group, product hierarchy, inventory valuation type, inventory special stock type, sales document, sales document item, WBS element, vendor, inventory valuation category, material valuation class, currency, material base unit, company code name, material name, MRP controller, purchasing group, unit of measure commercial name

System Landscape Requirements

The app consists of front-end components and back-end components. The back-end components and the front-end components are delivered in separate products and have to be installed in a system landscape that is enabled for SAP Fiori.

SAP Smart Business Product

SAP Smart Business 1.0 for SAP ERP SPS05

Contains Virtual Data Model (VDM)

SAP HANA Live 1.0 for SAP ERP SPS09

SAP Business Suite Product

SAP enhancement package 7 for SAP ERP 6.0 SPS07

For more information about the installation of the front-end components, see Installation Requirements (Analytical Apps).

Component for Customer Incidents

Fiori UI for Inventory Management (MM-FIO-IM)

More Information

App History: Inventory Turnover

App Implementation: Inventory Turnover

Configuration Settings: Inventory Turnover