Estimated cost of holding aged inventory. Joined with commerce sell-through to flag dead stock with cash impact.
At a glance
Annualised cost of holding inventory: capital + warehousing + obsolescence. Total Inventory Value × Carrying Rate %. Default carrying rate 22% (industry mid-market median).
| What it counts | SUM(Total Inventory Value) × Carrying Rate. Carrying rate breakdown: cost of capital (10%) + warehousing (5%) + insurance (1%) + obsolescence (4%) + shrinkage (2%) = 22% default. |
| Currency | Reporting Currency. |
| Time window | 30D (rolling annualised) |
| Roles | owner, finance |
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
UK apparel brand on BC, snapshot 14 Apr 26.| Component | Value |
|---|---|
| Total Inventory Value | £2,622,000 |
| Annual Carrying Rate | 22% |
| Annual Carrying Cost (this card) | £576,840 |
| Monthly impact | £48,070 |
Sibling cards merchants should reference together
| Card | Why pair |
|---|---|
| Total Inventory Value | The denominator. |
| Dead Stock Value | Highest carrying cost. |
| Inventory Turnover | Velocity reduces carrying. |
Reconciling against the vendor’s own dashboard
Where to look in Business Central: BC does not natively compute carrying cost. The Inventory Valuation report gives the numerator; the carrying rate is workspace-configured. Why may differ:| Reason | Direction | Why |
|---|---|---|
| Carrying rate | Either | Default 22%; merchant-specific |
| Multi-Company aggregation | Card sums |