Inventory value bucketed by days-on-hand. Aged stock is cash trapped on the floor.
At a glance
On-hand inventory bucketed by Item Ledger Entry receipt date. Bars: 0-30D, 31-60D, 61-90D, 91-180D, 181-365D, 365D+. Aged stock is cash trapped on the floor.
Calculation
Calculated automatically from your Microsoft Dynamics 365 data. See the At a glance summary above for what the metric tracks and the worked example below for a typical reading.Worked example
A UK omnichannel apparel brand on Business Central, single Company GBP. Snapshot 14 Apr 26.
Five things to notice:
- 23% of inventory is over 90 days old. For apparel (seasonal), 90 days is the markdown threshold. £610K is at risk of margin compression. The merchant should be running clearance promotions on these SKUs now, not next month.
- The 181-365D bucket (£220K, 8%) is the dead-stock candidate. Pair with Dead Stock Value which uses zero-velocity (no sales in 90+ days) as the criterion. Aging and zero-velocity overlap heavily but not perfectly.
- 365D+ bucket (£80K) is auditor-write-down material. UK accounting standards (FRS 102 / IFRS) require provisions on inventory expected to be sold below cost. A 365D+ apparel SKU rarely sells at full price. The Controller should be booking a Provision for Inventory Write-down at fiscal year-end.
- The alert (>15% in 180+ bucket) fires at 11% (8% + 3%). Not yet over the threshold, but trending towards it. The Vortex IQ trendline shows the 180+ bucket has grown from 7% to 11% over 6 months.
- Cross-connector finding (the kill-shot): of the £610K aged > 90D, £128K of those SKUs are still receiving Google + Meta ad spend. See Dead Stock with Active Ad Spend for the pause list.
Sibling cards merchants should reference together
Reconciling against the vendor’s own dashboard
Where to look in Business Central:Reports > Inventory > Inventory Aging (the closest native equivalent) Reports > Inventory > Item Age Composition (Value or Quantity variant) Item List > drill to Item Ledger Entries with date filter Power BI > Inventory Performance > add aging bucket calculation manuallyThe Item Age Composition report renders the same buckets when run for the same Locations. Date-bucket boundaries differ slightly between BC’s defaults (30 / 60 / 90 / 180 / 365) and the card; ensure the report is run with matching periods. Why our number may legitimately differ from BC’s reports:
Cross-connector reconciliation: