> ## Documentation Index > Fetch the complete documentation index at: https://docs.vortexiq.ai/llms.txt > Use this file to discover all available pages before exploring further. # Dead Stock Value, SAP > Items with on-hand value > 0 and zero sales in 180 days. Direct write-down candidate. How to read it, why it matters, and how to act on it. **Metrics type:** [Key Metrics](/nerve-centre/overview#metrics-types-explained) • **Category:** [Ecommerce Platform](/nerve-centre/connectors#connectors-by-type) > Items with on-hand value > 0 and zero sales in 180 days. Direct write-down candidate. ## At a glance > Materials with on-hand stock (`MARC.LABST > 0`) and zero sales (no goods issue from sales-document delivery) in the last 180 days. The direct write-down candidate at year-end audit. Sums the valuation value of those materials. Configurable threshold (180D default; 365D for spare parts; 90D for fast-fashion). | | | | ---------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **What it counts** | `SUM(MARC.LABST × MBEW.STPRS or VERPR)` for materials where `LAST_GOODS_ISSUE_FROM_SALES_DOCUMENT_DELIVERY` is null or older than 180 days. Goods issues from internal transfers, scrap, or production consumption do not count as "sales" for this calculation; only Sales-Document-driven goods issues from movement type 601 / 602. | | **Tax treatment** | n/a, balance-sheet stock value. | | **Shipping** | Inbound freight loaded onto valuation if procurement-conditions configured. | | **Discounts** | Procurement discounts net into moving-average price. | | **Refunds** | n/a. | | **Cancelled / voided orders** | n/a. | | **Currency** | Group Currency for consolidated views. | | **Plant / Storage location scope** | Respects dashboard filter. Excludes consignment / blocked / restricted. | | **Velocity threshold** | 180D zero-sales is the default. Configurable to 90D / 365D / merchant-specific. | | **Time window** | `RT` (snapshot) | | **Alert trigger** | `>$25k dead` (any total dead-stock value above threshold; tunable per workspace). | | **Sentiment key** | `dead_stock` | | **Roles** | owner, finance, operations | ## Calculation Calculated automatically from your SAP 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 enterprise B2B distributor on S/4HANA Cloud. Snapshot 03 May 26. | Bucket | Material count | Value (USD, Group Currency) | | -------------------------------------- | -------------- | --------------------------- | | Dead 180-365 days | 412 | \$1,240,000 | | Dead 365+ days | 218 | \$1,640,000 | | **Total dead-stock value (this card)** | **630** | **\$2,880,000** | This is 5.0% of total inventory (\$57.4M). Within the typical 3 to 8% range for B2B distribution but on the higher side. Five things to notice: 1. **$2.88M of dead stock means $2.88M of capital not earning a return.** Carrying cost at 25% per annum = $720K/year of pure waste. At 30% markdown clearance, recovery is $2.0M; at 50% markdown, \$1.4M; at full write-down, zero. 2. **Year-end audit risk.** External auditors typically require a write-down on materials aged 365+ days with zero sales velocity. The \$1.64M in the 365+ bucket is a likely Q4 P\&L hit unless cleared first. Better to clearance-sell at 30 to 50% off than take the full write-down. 3. **Drill into [Top SKUs by Inventory Value](/nerve-centre/kpi-cards/sap/sap-top-skus-value)** to see which materials dominate. Pareto applies: 20% of dead-stock materials drive 70% of dead-stock value. Action the top 50. 4. **The killer cross-platform finding: [Dead Stock with Active Ad Spend](/nerve-centre/kpi-cards/sap/dead-stock-with-active-ad-spend).** A subset of these dead-stock materials is still being advertised on Google / Amazon / Meta. The merchant is paying to drive traffic to products it cannot sell. That cross-platform join is the highest-impact finding from this card. 5. **Multi-Company-Code aggregation.** Dead stock per CC: US $1.84M, CA $640K, MX \$400K. The MX warehouse has lower dead-stock concentration but smaller base; the CA warehouse has the highest dead-stock-as-percent at 7.6%, suggesting either over-ordering or local demand softness. ## Sibling cards merchants should reference together | Card | Why pair it with Dead Stock Value | | ---------------------------------------------------------------------------------------------- | ------------------------------------------------------- | | [Total Inventory Value](/nerve-centre/kpi-cards/sap/sap-total-inventory-value) | The denominator. | | [Inventory Aging](/nerve-centre/kpi-cards/sap/inventory-aging) | The full age curve including non-dead aged stock. | | [Top SKUs by Inventory Value](/nerve-centre/kpi-cards/sap/sap-top-skus-value) | Identifies which materials drive the dead-stock figure. | | [Dead Stock with Active Ad Spend](/nerve-centre/kpi-cards/sap/dead-stock-with-active-ad-spend) | The kill shot: dead stock you are advertising. | | [Inventory Carrying Cost](/nerve-centre/kpi-cards/sap/sap-inventory-carrying-cost) | The annual cost of holding this dead stock. | | [Margin Erosion Alerts](/nerve-centre/kpi-cards/sap/margin-erosion-alerts) | Forced markdowns to clear dead stock erode margin. | ## Reconciling against the vendor's own dashboard **Where to look in S/4HANA Cloud:** > **Slow-Moving Stock** Fiori app > **Inventory Aging** Fiori app filtered to 180+ buckets > **Material Documents Overview** transaction MB51 with movement-type filter > **Embedded Analytics**: CDS view `I_MaterialStockMovement` Direct deep-link: `https://my{tenant}.s4hana.cloud.sap/sap/bc/ui2/flp#SlowMovingStock-display` **Why our number may legitimately differ from SAP's Slow-Moving Stock report:** | Reason | Direction | Why | | ----------------------- | --------- | --------------------------------------------------------------------------------------------------------------------------- | | **Velocity threshold** | Either | Default 180D zero-sales. SAP's report uses configurable thresholds; align via field map. | | **Movement type scope** | Either | Card counts only sales-driven goods issues (movement type 601 / 602). SAP's report may include other consumption movements. | | **Plant scope** | Either | Card respects dashboard CC scope. | | **Stock type** | Either | Card excludes consignment / blocked / restricted. | **Cross-connector reconciliation:** | Card | Direction | Notes | | ---------------------------------------------------------------------------------------------- | -------------- | ----------------------------------------------------------- | | [Dead Stock with Active Ad Spend](/nerve-centre/kpi-cards/sap/dead-stock-with-active-ad-spend) | Cross-platform | The kill-shot subset: dead stock with active paid-ad spend. | ## Known limitations / merchant FAQs **Why 180 days?** Industry default for distribution. Spare parts: 365D. Fast-fashion: 90D. Configurable per merchant. **Are seasonal items unfairly flagged?** Yes if you do not configure seasonality. A material flagged dead in mid-October but sells reliably from November to February should be excluded via a seasonality calendar. Vortex IQ supports seasonality flags via the field map's material-master enrichment. **New product launches before they sell?** Configurable warmup period (default 90 days from goods receipt). New materials within warmup are excluded. **Inter-plant transfers, do they count as sales?** No. Movement types for stock transfer (301, 311, etc) do not reset the sales-velocity clock. Only movement types 601 / 602 (delivery from sales-document) count. **Production consumption, does it count as sales?** No. Movement type 261 (consumption from production order) does not count. The material is "used" but not "sold to a customer", so it is not exiting inventory in the way that resets the dead-stock clock. **Should I write down at year-end or sell at clearance?** Both have audit-acceptable treatment. Clearance recovers some value; write-down accepts zero. Most enterprise auditors prefer the merchant tries clearance first if commercially feasible. **Multi-Company-Code, how does dead stock translate across CCs?** Each CC computes independently. A material can be dead in CC 1000 (no sales there) but active in CC 2000 (sales there). Internal stock transfer between CCs is a treatment option (move the dead stock to where demand exists). **SAP Material Ledger / Actual Costing, does it change the value?** Yes if your tenant uses Actual Costing. Dead-stock value at periodic actual cost may differ from standard or moving-average. Card uses each material's price control by default. **Reservation against dead stock, what happens?** A material with a reservation (e.g. for a future production order) but otherwise zero recent sales velocity still counts as dead until the reservation consumes it. The reservation just delays the write-down decision. **T-codes for drilling in?** MMBE (stock overview), MB52 (stock list), MB51 (material documents history), CKM3N (price analysis), MR21 (material price change for write-down). *** ### Tracked live in Vortex IQ Nerve Centre *Dead Stock Value* is one of hundreds of KPI pulses Vortex IQ tracks across SAP and 70+ other ecommerce connectors. Nerve Centre runs the detection layer; Vortex Mind investigates the cause when something moves; Ask Viq lets you interrogate any number in plain English. [Start for free](https://app.vortexiq.ai/login) or [book a demo](https://www.vortexiq.ai/contact-us) to see this metric running on your own data.