Inventory reports provide visibility into your stock levels, movement, and value. For Pakistani businesses dealing with physical goods, these reports are essential for avoiding stockouts, reducing dead stock, and maintaining profitability.

This guide covers essential inventory reports, what insights they provide, and how to use them for better inventory management.

Why Inventory Reports Matter

Prevent stockouts: Know before you run out
Reduce excess: Identify slow-moving items
Accurate valuation: Know your inventory worth
Improve turns: Track and improve inventory efficiency
Better purchasing: Data-driven ordering decisions

Essential Inventory Reports

1. Stock on Hand Report

The most basic report—current quantity of each item in stock.

Shows: SKU, item name, quantity, location (if multi-location)

Use for: Quick stock checks, order fulfillment verification

2. Stock Valuation Report

Shows the monetary value of your inventory using your valuation method (FIFO, LIFO, or weighted average).

Shows: Item, quantity, unit cost, total value

Use for: Financial statements, insurance, bank financing

3. Inventory Aging Report

Shows how long items have been in stock. Critical for identifying dead stock.

Item	0-30 Days	31-60 Days	61-90 Days	90+ Days
Product A	500	200	0	0
Product B	100	150	300	500

Use for: Dead stock identification, clearance planning

4. Low Stock / Reorder Report

Items at or below reorder point.

Shows: Item, current stock, reorder point, suggested order quantity

Use for: Purchasing decisions, avoiding stockouts

5. Stock Movement Report

Shows all inventory transactions for a period—receipts, sales, adjustments, transfers.

Shows: Date, transaction type, quantity in, quantity out, balance

Use for: Audit trail, discrepancy investigation, trend analysis

6. Inventory Turnover Report

How quickly inventory sells and is replaced.

Inventory Turnover = Cost of Goods Sold / Average Inventory

Days of Inventory = 365 / Turnover Ratio

Use for: Efficiency analysis, comparing product performance

7. Stock Take Variance Report

Compares physical count to system quantity after stock audit.

Shows: Item, system qty, counted qty, variance, variance value

Use for: Shrinkage analysis, process improvement

8. Purchase History Report

What you bought, from whom, at what price.

Use for: Supplier analysis, price trend tracking, negotiation

9. Sales by Product Report

Which items sell most/least.

Use for: Product decisions, marketing focus, discontinuation

10. Gross Margin by Product

Profitability of each item sold.

Use for: Pricing decisions, product focus, identifying unprofitable items

Report Frequency

Report	Frequency	Reviewed By
Stock on Hand	Daily/On-demand	Store staff
Low Stock Alert	Daily	Purchasing
Stock Movement	Weekly	Stock manager
Stock Valuation	Monthly	Accountant/Owner
Inventory Aging	Monthly	Stock manager
Turnover Analysis	Monthly/Quarterly	Management
Variance Report	After each count	Stock manager

Key Metrics to Track

Inventory Turnover Ratio

Higher is generally better—means stock sells quickly. Industry benchmarks vary:

FMCG/Grocery: 12-20 times/year
Retail clothing: 4-6 times/year
Electronics: 6-8 times/year
Industrial equipment: 2-4 times/year

Days Sales of Inventory (DSI)

How many days of sales your current inventory covers.

DSI = (Average Inventory / COGS) × 365

Example: If DSI = 45, you have 45 days of stock on hand.

Stockout Rate

Percentage of time items are out of stock. Target: under 5%.

Dead Stock Percentage

Value of items not sold in 6+ months as percentage of total inventory. Target: under 5%.

Shrinkage Rate

Stock loss from theft, damage, or errors. Target: under 2%.

Using Reports for Better Decisions

Purchasing Decisions

Low stock report → What to order now
Turnover report → How much to order
Purchase history → Best supplier/price

Pricing Decisions

Margin report → Adjust prices on low-margin items
Aging report → Discount slow movers

Space Allocation

Sales velocity → Prime shelf space for fast movers
Turnover → Reduce space for slow items

Frequently Asked Questions

What is the most important inventory report?

For daily operations, the Low Stock/Reorder report is most critical—it prevents stockouts. For financial purposes, Stock Valuation is essential. For long-term planning, Turnover and Aging reports provide strategic insights.

How do I calculate inventory value for taxes?

Use the Stock Valuation report at financial year-end. Ensure your valuation method (FIFO, LIFO, weighted average) is consistent with previous years. This closing stock value is used in your income tax return.

What causes inventory report discrepancies?

Common causes include: unreported damage or theft, data entry errors, sales not recorded, items received but not entered, items in wrong locations, and timing differences between physical movement and system updates.

Can I get inventory reports on mobile?

Yes. Most modern cloud-based inventory systems offer mobile access to key reports—stock levels, low stock alerts, and basic movement reports can be viewed on smartphones.

How do I improve inventory turnover?

Reduce slow-moving items through discounts or discontinuation. Improve demand forecasting to avoid overstocking. Negotiate smaller, more frequent orders with suppliers. Focus marketing on high-margin items.

Conclusion

Inventory reports transform raw stock data into actionable insights. Regular review of key reports helps prevent stockouts, reduce waste, and improve profitability. Make inventory reporting a regular habit, not an annual exercise.

Need comprehensive inventory reporting? HysabOne provides all essential inventory reports with real-time data, customizable views, and mobile access. Contact us on WhatsApp for a demo.

Last Updated: December 2024

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Inventory Reports: What to Track and Why (Complete Guide)