Think about your warehouse, bustling with activity. Employees are scanning barcodes, boxes are stacked high on shelves, and products move in and out every hour. But despite the flurry of motion, something isn’t quite right. You’re overstocking in certain areas and running low in others.
The chaos might be manageable for now, but you can probably already see the writing on the wall: Without a clear picture of your inventory, this disarray will lead to bigger problems, including lost sales and frustrated customers.
To stay ahead, you need a reliable way to monitor what’s coming in, what’s going out, and what’s on the shelves. That’s where inventory reports come in. These documents provide a comprehensive view of stock levels, helping pinpoint excess inventory and risks of stockouts. With this data, you can make informed decisions that streamline operations and keep your shelves stocked.
Understanding inventory reports
An inventory report summarizes what you have in stock based on a particular attribute. And there are many types of reports that serve various purposes to support businesses with inventory management and decision-making. Some might look at the raw materials you have on hand, outstanding purchase orders, or inputs for a particular bill of materials. You could even generate a detailed summary that lists everything you have in the warehouse, including items, their quantities, and their condition.
For businesses, inventory reports aren’t just about listing stock on shelves. A well-crafted inventory report can offer critical insights into key metrics, too — like inventory turnover ratios, stock levels, or reorder points. This information lays the groundwork for effective inventory planning, allowing businesses to better forecast demand, track restocking needs, and calculate carrying costs more efficiently.
Modern businesses often automate inventory tracking through inventory management software. These tools update stock levels in real time and generate reports that summarize key metrics, such as valuation or categorization of items. By automating the reporting process, businesses save time, reduce errors, and improve inventory control.
The advantages of inventory reports
With the right inventory report format, you can get a clearer view of what’s happening in your warehouse and make smarter decisions. Here’s how inventory reports benefit your business.
Make better decisions
The right inventory report gives you the data you need to make confident choices. With details about your stock levels, inventory turnover, and even your reorder points, you can decide when to issue purchase orders and which products need attention.
Prevent stockouts and overstocking
One of the biggest challenges in inventory management is finding the balance between having too much stock and not enough. Inventory reports help you track where you stand, so you can avoid stockouts (when you run out of products) and overstocking (when you have too much sitting around).
With this information, you can determine your economic order quantity (EOQ), which is the optimal amount of stock to reorder to balance your holding costs with ordering or shipping costs.
Save time and cut down on errors
Manually tracking inventory can quickly become overwhelming, and errors can slip through the cracks. With automated inventory tracking through inventory management software, you can generate reports that keep you up to date and reduce mistakes.
Boost your forecasting and planning
Having clear insights from your inventory reports makes forecasting demand much easier. Whether it’s identifying trends from your sales report or tracking inventory turnover, you’ll have the data you need to plan for busy seasons, restock at the right time, and keep your shelves full with products your customers want.
Increase profitability
An organized inventory report helps you see what’s working and what isn’t. By looking at slow-moving items or calculating your inventory turnover ratio, you can adjust your pricing, restocking strategies, or even offer promotions to move products faster.
Types of inventory reports
Each type of inventory report serves a specific purpose and provides unique insights into different aspects of your operations. Let’s break down some key reports that keep you on top of your stock levels and make informed decisions for your business.
Stock report
A stock report provides a clear snapshot of your inventory at any given moment. It shows the quantity of each item in your warehouse or on your shelves, helping you maintain balance by preventing stockouts and overstocking. It’s your go-to report to keep things organized.
Inventory valuation report
How much is your inventory worth? The inventory valuation report answers this question by calculating the monetary value of your current stock. If certain items have lost value due to damage, obsolescence, or age, an inventory write-down or even write-off can reflect their reduced worth. This adjustment ensures that your inventory’s value is accurate and up to date, preventing overstatement of profits and giving you a clearer picture of your financial standing.
Purchase order report
This report tracks the purchase orders you’ve made with suppliers. It lists quantities ordered and delivery dates to help you stay ahead of your inventory needs.
Inventory turnover report
The inventory turnover report shows how quickly your products are moving. It’s a key metric for identifying high-demand items and those that aren’t selling as fast. A high inventory turnover ratio means you’re selling products quickly, while a low rate signals the need for changes in strategy.
Inventory categorization report
Organizing inventory into categories is essential for managing large volumes of stock. An inventory categorization report sorts your items by type, supplier, or location, providing a more structured view of your inventory. This makes it easier to spot trends, track stock across different categories, and optimize purchasing decisions.
Inventory forecasting report
Looking ahead is just as important as managing what you have in the present. The inventory forecasting report helps predict future demand based on historical sales, seasonal trends, and market fluctuations. Accurate forecasting gives you a strategic edge, allowing you to plan ahead for restocking and replenishment.
How to create a stock report
There are dozens of ways to create an inventory report, depending on what you want to track and the system you use.
But let’s say you’re using a manual method like Excel to do a stock report that details the inventory you have on hand in one warehouse. Here’s how to go about it:
- Create a column for inventory items: Start by listing all the items you want to track. Assign unique identifiers, like SKUs or product codes.
- Add a column for item descriptions: Include brief descriptions for each item — size, color, or category — to provide clarity when reviewing or sharing the report with your team.
- Track where inventory is stored: Whether you’re storing in one warehouse or across locations, it’s important to note where it’s kept. Include the main location, like which facility, and the specific space within the warehouse.
- Record quantities on hand: Include a section for the current stock count of each item. Conduct a physical inventory count of any items you have stored.
- Note the units of measure: If it’s relevant to your stock, include a column to indicate how many units you have by a particular measurement. That might mean “8 boxes of screws” or “4000 screws” — whatever’s most effective.
- Include reorder points: Specify the minimum stock levels that trigger replenishment. Setting reorder points ensures timely restocking and helps prevent overstocking.
- Note the default vendor: Add the information you’d need to issue a purchase order when your stock reaches its reorder point.
- Log the average cost: Add a section to record the average cost (how much you pay) and the price (how much customers pay). Tracking this can help with inventory valuation and calculating carrying costs.
- Organize inventory into categories: Group inventory based on product type, demand level, or seasonality criteria. Clear categorization simplifies your report and highlights priorities.
How to generate stock reports in Fishbowl Advanced
How you generate an inventory report depends on your inventory management system. But with Fishbowl, you can generate dozens of reports with ease, both custom and included.
To show the simplicity of report generation in action, here’s how to create a stock report to check what you have on hand:
- Find the Reports module: Navigate to the Reports module to find the type of report you want to generate.
- Choose Inventory Availability: Although you can generate dozens of reports about your inventory with Fishbowl, the Inventory Availability Report shows what you have on hand, like the stock report generated above. It will include how much of an item is On Hand, Allocated, Not Available, Drop Ship, Available, On Order, Committed, and Backordered.
- Adjust filters as needed: If you’re looking for a particular piece of information, add a filter to the report. You can look at location groups, part numbers, the count, and more.
- Enhance reporting with Fishbowl AI Insights: Fishbowl Inventory is transforming the process of creating and managing reports. With the upcoming Fishbowl AI Insights plugin, businesses can take advantage of AI-driven features to streamline inventory planning, generate custom reports, and gain actionable insights. Learn more about these cutting-edge capabilities here.
Optimize your inventory reports with Fishbowl
Inventory reports are the foundation of effective inventory management. With Fishbowl, you can choose between dozens of custom report options, whether you’re trying to organize stock by inventory age, the date received, the bill of materials it belongs to, and more.
From monitoring stock levels to generating detailed inventory reports, Fishbowl can equip you with the tools to save time, reduce errors, and make smarter business decisions. Plus, it integrates seamlessly with QuickBooks to simplify every aspect of your inventory process.
Take the guesswork out of managing your inventory. Harness the power of Fishbowl to optimize your inventory control and keep your business on track. Book a demo today!