(ID #8207) This Inventory option in Options Configuration determines whether the system uses current or average quantity-on-hand (QOH) in calculating inventory ratios (GMROI, Turns, and Sales to Inventory).
A = (ITR users only) Inventory ratios that include inventory value in their calculation are based on average QOH, which is a true average of QOH over a specified time period. For example, to calculate the average QOH over a one-year period, the system determines what the QOH was for each day during this period, using data in the Inventory Transaction Register (ITR). It then sums up the QOH for each day and divides by the number of days.
C = Inventory ratios are calculated using current QOH.