Explain NetSuite Inventory Quantity, Value and Average Cost Over Time

This article is relevant if you would like to understand how to explain NetSuite’s inventory quantity, valuation, and average cost using running balances over time.

Background

Back in 2015, I wrote an article to help solve the challenge of tallying information using NetSuite Saved Search.   From that article, in 2018, I wrote an article, Learn How To Accumulate NetSuite Inventory Balances via Saved Search.  These articles lay down the technical foundation to explain how to accumulate values, or running balances, over multiple records.

In a recent client implementation, a client was having trouble understanding how their average costs were dramatically changing from the start to the end of the accounting period.  To answer this question, I offered that if we can see average costs change every time there was an item movement, we could spot the culprit transactions.

Generated Item Stock Ledger Movement Explanation

I went to work to produce the stock ledger that would explain the current balances on the inventory ledger by location.  The key to this is to understand that NetSuite is keying on the item’s respective inventory general ledger account;  if you accumulate all transactions that affect that balance sheet account, you can explain the current balance (or any balance up to a point in time).

Using the knowledge in that previous article, I enhanced the searches to include an average cost component.    Now you can see the average cost value as each new transaction comes into play.  It then becomes easy to spot a significant change.

Get the Inventory Stock Ledger Saved Search

Given the value of this search in inventory situations, I bundled it up to make it available to the customer community.  The bundle will automatically create an inventory stock ledger sublist for your inventory items.  It also provides the related saved search with an item and location filter allowing you to selectively run queries ad hoc.

The bundle is available to all NetSuite customers by making a request and providing me your NetSuite Account ID. Naturally, if you need help to refine the search and solve interesting challenges, my firm is here to help. 

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