Profit21 NL

Inventory

Turn & Earn

Assess inventory performance by both profit margin and how quickly stock moves. High-turn, high-margin items are your best performers; low-turn, low-margin items are candidates for rationalization.

What Turn & Earn Measures

Turn & Earn combines two metrics into a single performance score:

TurnsHow many times per period you sell through the average inventory value (COGS ÷ Avg Inventory). High turns = fast-moving stock.
Earn (GP%)The gross profit percentage on each sale. High earn = good margin per unit sold.
T&E ScoreTurns × GP% ÷ 100. A composite — an item needs both to score well.

The T&E Score color scale: green ≥ 2.0, gold ≥ 1.0, amber ≥ 0.5, red < 0.5. Items showing — have no inventory value recorded (see below).

Why Inventory Value Shows as Zero

The Turns calculation requires an average inventory value — a snapshot of what the item was worth in stock during the period. P21 does not record this automatically.

You must manually trigger inventory value snapshots via Setup › System Setup › Maintenance › Demand Year Maintenance. Enable Update Inventory Value and run it at least once per period — P21 averages all snapshots taken within a period.

Without inventory value data, only GP% is meaningful. Turns and the T&E Score will show as — for all items.

Acting on Turn & Earn Results

Use the four-quadrant framework:

High Turn, High EarnStars — protect stock levels, negotiate better cost.
High Turn, Low EarnVolume drivers — reprice or reduce costs to improve margin.
Low Turn, High EarnSleepers — reduce safety stock; sell on demand only.
Low Turn, Low EarnCandidates for deletion — liquidate or drop the line.

In P21: Reports › Inventory › Turn and Earn. Filter by supplier line, product group, or item range. Run for individual periods or a rolling 12-month view.

Turn & Earn by Item