(ID #8209) This Inventory option in Options Configuration determines whether the system uses year-to-date (YTD) figures or a running accumulation to calculate inventory ratios (GMROI, Turns, and Sales to Inventory).
R = (ITR users only) Inventory ratios (GMROI, Turns, Sales to Inventory) are calculated using the running sales and running Cost of Goods Sold (COGS) that are accumulated over a specified time period. The system calculates this information based on the transactions found in ITR.
Y = Inventory ratios (GMROI, Turns, Sales to Inventory) are calculated using YTD Sales and YTD Cost. Your inventory ratios may not be accurate in the beginning of the year since the system uses YTD information. For example, if an item is seasonal and doesn't start selling until spring or summer, the YTD Sales and YTD Cost of Sales will be very low early in the year, which will adversely affect your Turns and GMROI for this item.