The Stock Valuation Report
It’s essential for the financial health of your practice that you track items you keep in inventory. The investment you make in those items represents a substantial part of the costs of running your business. The inventory also consists of several types of products and many individual products. It’s very important that you track each separately.
So you need to know:
RxWorks collects all the information needed to answer those questions. But as you can imagine a single report that shows that much detail could become overwhelming. So, we have designed a report that does not show all of the information all at once.
It starts with a summary and then lets you “drill down” to get more and more details of those items that interest you.
The report is intended to be viewed on the computer screen, as the content is interactive for “drilling down”. However, you can print the report at any time by selecting ‘Print’ from the Microsoft Windows orb.
Accessing The Report
- Navigate to the RxWorks Reports Work Area.
- Select ‘J: Advanced Analysis.’
- Select ‘Stock Valuation.’
How to Generate the Production by Veterinarian Report
- Choose a period of time to analyse from the drop-down list.
- Select ‘Preview.’ This will open the report window.
- In the report window, you can analyse your inventory by several headings. Select which you need from the Display options.
- The Value On Field: We have included another option in the report to allow you to calculate the Value of your on-hand inventory using different costing methods.
- As some practices have multiple locations where they stock products, use the ‘Stock Location’ drop-down to choose which ones to include in the report.
- Choose if you want to include any deactivated items in the report.
- All of your stocked items do not have to be included. If you want a selection of products, choose them from the Restrict to drop-down list.
- The next selection chooses which of the clinics in your practice holds the cost of the products for the valuation.
- Click ‘View Report.’
Or select ‘Other’ and enter the start and end dates for the period you want to analyse.
Currently we are using only one of the alternatives which is Average Purchase Price. So there is no need for you to make any selection at the present time.
Average Purchase Price is calculated as follows: If there were more than one receipt of the item in the period you’ve selected, it’s the average of the prices you were charged for those receipts.
If there was one receipt in the period, we use the price for that. If there were no receipts, we use the purchase price for the last items received before the period started.
What Does the ‘Stock Valuation’ Report Show Me?
The report first shows a summary of inventory analysed by the heading you selected for the Display. As it’s a summary, we can only show the value of each heading and the total valuation of what you have in stock. In the example below we chose Revenue Group as the heading.
‘Drilling Down’ Into The Report Details
As you look over your report, you’ll see items that warrant more investigation. This is where drill down becomes very useful. Normally you would have to search out and generate another report to get what you want.
Use the ‘+’ and ‘-‘ symbols to the left of the listed transaction groups to expand and collapse further details.
In this example, we chose Revenue Group as the heading.
There’s a ‘plus’ sign next to each Revenue Group, which indicates there is more detail available. By clicking on one, we see further details of items that make up the Group. In this example, we chose to expand ‘Vaccine Products’. Note the ‘plus’ sign has changed to a ‘minus’ sign. There is no ‘plus’ sign next to the items, which tells us that there is no more detail available in this report.
We can now see the quantity we had on-hand at the start of the period covered by the report. Also shown are the number we bought and sold. Then we can see what is being “lost” through adjustments and wastage. Obviously, these last two figures should be carefully monitored as they represent lost revenue. The last quantity shown is the number we had in stock at the end of the period we selected.
The Value of the inventory is calculated by multiplying the Closing Stock by the Average Purchase Price. This figure indicates what you would have to pay to replace the number you have in stock and is sometimes called the replacement value. It’s a management control metric not a financial accounting figure.
This illustrates how you can get to more and more detail for just the items that you want. And you can stop at whatever level of information you want. There is no need to have a report that shows every detail of information for every item. You can concentrate on those that interest you without being overwhelmed by a report that could run into lots of pages.