This report indicates the percentage of items sold in relation to the amount of inventory available during a selected time period.
Percentage in value
Percentage in value is calculated by dividing the cost of goods sold by the total purchased value.
For example, with a purchase of NOK 100 and cost of goods sold of NOK 30, Sell Through will be 30%.
Percentage in quantity
Percentage in quantity is calculated by dividing the number of goods sold by the total number purchased.
For example, a purchase of 120 items is made and the number of items sold is 60, Sell Through will be 50%.
Follow the sales trend
The report is used, among other things, to follow the sales trend from the start of the season, through the 'Full price period' and up to the start of the 'Sales period', where the merchant often has a rule of thumb for what percentage of sales should be achieved before the 'Sales period' starts.
Use the report as a basis for purchasing analysis for subsequent seasons
The report is also often used as a basis for purchasing analysis for subsequent seasons, as it provides an overview of the proportion of goods sold in relation to purchases per model, color and size, etc.
As the reports are dynamic, you can easily see which color or size are most popular, regardless of model or brand. At the end of the season, for example, you can use the date picker to analyze how the sales were at the start of the 'Sales Period'.
Payback ratio is calculated by dividing net turnover by total purchased value. This gives an indication of what proportion of the invested capital the store has already obtained. When the payback ratio reaches 100%, the store has recovered its investment for the season.
The different units of measure in the report can be adapted so that reconciliation and flow of goods between stores is taken into account.
Reconciliation may be necessary to take into account, for example, routine failures, where the purchase orders have not been registered, and the stock value and stock are corrected via a stock count.
Flow of goods is also something that needs to be taken into account if you want to evaluate the progression in the store. When using the report for purchasing analysis for the following season, you may not want to consider flow of goods.
For more information on how to use the reporting tool, read the article How to use dynamic reports.