On-hand inventory at landed cost in Oracle ERP Cloud. The working-capital line on the balance sheet.
At a glance
The dollar value of all on-hand inventory across every Oracle Inventory Cloud organisation, valued at the configured cost method (typically Average Cost or Standard Cost in Fortune 500 implementations). The working-capital line that appears on the Balance Sheet and the denominator of inventory turnover.
| What it counts | SUM(on_hand_quantity × unit_cost) across all inventory organisations and subinventories within the Business Unit scope. Includes raw materials, WIP (if Manufacturing module is enabled), and finished goods. Excludes consigned inventory owned by suppliers, in-transit not yet received, and customer-owned inventory. |
| Tax treatment | n/a, inventory is held at cost. |
| Cost method | Average Cost (most common in Fortune 500 distribution), Standard Cost (manufacturing), or FIFO / LIFO depending on configuration per inventory org. The card respects whichever method is configured. |
| Landed cost | Included if Oracle Landed Cost Management module is enabled. Freight, duty, handling roll into the unit cost. Without LCM, only invoiced material cost is held. |
| In-transit | Excluded by default. In-transit shows on the Balance Sheet as a separate line. |
| Reserved vs available | Both included. The card values everything physically on hand. |
| Currency | Multi-Ledger: reporting currency at cost-rate FX. |
| Business Unit scope | Respects dashboard filter. |
| Time window | Real-time snapshot (RT). |
| Alert trigger | None by default; pair with Inventory Turnover Ratio for actionable signals. |
| Roles | owner, finance, operations |
Calculation
Calculated automatically from your Oracle ERP Cloud 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 US Fortune 500 omnichannel home-goods retailer on Oracle ERP Cloud + Oracle Inventory Cloud, with Manufacturing module enabled for furniture assembly. Snapshot 12 Apr 26.| Inventory category | On-hand value (USD, average cost) |
|---|---|
| Finished goods, US distribution centres (4 DCs) | $184,200,000 |
| Finished goods, EU distribution (UK + NL) | $48,400,000 |
| WIP, US Mexico assembly plant | $11,800,000 |
| Raw materials, all sites | $32,600,000 |
| Total Inventory Value | $277,000,000 |
- **1.4B, the implied turnover is 5.05 (1,400 / 277), a healthy figure for retail home goods.
- WIP at $11.8M. Indicates the Manufacturing module is recording in-progress assembly cost. If WIP age is rising (drill into Inventory Aging), production cycle is slowing.
- **EU stock at 2.4M without any underlying physical change. Pair with FX Currency Exposure.
- Cycle-count health. The card is only as accurate as the cycle counts feeding it. Oracle’s Cycle Count program runs monthly or quarterly per ABC class. If counts are overdue, the system value drifts from physical reality.
- Aged subset (>180 days): Cross-reference Inventory Aging and Dead Stock Value for the part of this $277M that is at write-down risk.
Sibling cards merchants should reference together
| Card | Why pair it with Total Inventory Value |
|---|---|
| Inventory Aging | The aging curve of this total. |
| Dead Stock Value | The zero-velocity subset; write-down candidate. |
| Inventory Turnover Ratio | This card is the denominator. |
| Inventory Carrying Cost | What this stockpile is costing per period (capital + warehousing + insurance). |
| Top SKUs by Inventory Value | The Pareto view; usually 20% of SKUs hold 80% of the value. |
| Average Landed Cost per Unit | Unit-cost trend feeding this total. |
| Landed Cost Variance vs Standard | Whether unit costs are drifting from plan. |
Reconciling against the vendor’s own dashboard
Where to look in Oracle ERP Cloud:Inventory → Reports → Inventory Value Report (per inventory org) OTBI → Inventory Real Time Subject Area → On Hand Value Cost Management → Inventory Valuation Report (audit-grade, period-end)The standard Inventory Value Report run at the same period-end as the dashboard snapshot should match this card to within rounding. The Cost Management Inventory Valuation Report is the audit version that locks period-end values for financial-close use. Why our number may legitimately differ:
| Reason | Direction | Why |
|---|---|---|
| Sync timing vs period close | Either | Card is real-time; the period-end Inventory Valuation Report is locked at fiscal close. Mid-period the card moves with each receipt and shipment. |
| Cost method election | Either | Average Cost adjusts with each receipt; Standard Cost stays put with variances posted separately. Card respects election per inventory org. |
| Landed Cost timing | Card may understate | If LCM has unprocessed import documents, those duty / freight items have not yet rolled into unit cost. |
| Subinventory exclusion | Either | Some implementations exclude Quarantine or Damage subinventories from total value. Card includes by default; field map can override. |
| Card | Direction | Notes |
|---|---|---|
| Commerce-platform inventory counts | Approximate | Commerce shows units; Oracle shows value. The unit count should match across Inventory Sync Drift. |
| Dead Stock with Active Ad Spend | Subset | The wasted-ad-spend cross-channel kill shot operates on the dead-stock fraction of this total. |
Known limitations / merchant FAQs
Why is the card different from the period-end Inventory Valuation? Card is live; valuation is fiscal-close locked. Mid-period the card rises and falls with each receipt and shipment. At period close they should converge. Average Cost vs Standard Cost, which does the card use? Whichever the inventory org is configured for. Multi-org Fortune 500 implementations often mix: distribution orgs on Average Cost, manufacturing on Standard Cost. The card sums the value as-configured. Does this include consigned inventory? No by default. Consigned (supplier-owned, on your shelf) is not your Balance Sheet asset. If your implementation uses Vendor Managed Inventory (VMI) and you have ownership flag = yours, then yes. Why does WIP appear? Manufacturing module bookkeeping. WIP captures the partially-converted material plus labour plus overhead absorbed during the production process. Pre-finished-goods completion. FX impact on the consolidated value? Multi-Ledger: each org’s inventory value is held in the org’s currency, translated to reporting currency at the configured FX rate. Translation cadence per ledger configuration. The card reports the post-translation consolidated value. Cycle-count accuracy, how do I know my number is right? Oracle’s Cycle Count Performance Report shows variance trends. ABC class A items should be counted weekly/monthly; class C quarterly. If variance is rising, the card is drifting from physical reality. Differences vs SAP MM inventory valuation? SAP S/4HANA’s stock value lives in tablesMBEW (per material) and MBEWH (history); Oracle’s lives in CST_INV_LAYERS and MTL_ONHAND_QUANTITIES. Conceptually identical, mechanically different. Vortex IQ supports both.
Differences vs NetSuite inventory valuation?
NetSuite has a single integrated inventory valuation; Oracle has separate Cost Management and Inventory modules with explicit cost-method election per inventory org. Oracle is more flexible (multi-method); NetSuite is simpler. Same underlying concept of quantity × unit_cost.
Oracle Analytics Cloud (OAC) shows a different number, why?
OAC pulls from the same data store but at a different cadence (typically nightly batch vs our 15-minute REST API pull). At month-end close the two converge.