Business Central includes a graphical inventory profile that lets you investigate an item’s historical inventory development. As a CFO or planner, you can use it to see whether you carry too much inventory or whether your stock levels are reasonable.
You open the inventory profile directly from the item card. Run it normally to view the current profile, which shows your present inventory and open orders. To see the full picture, tick the “Include history” checkbox on the request page so the graph also shows past inventory levels.
You read the profile visually. A profile that stays at a healthy level suggests your safety stock is set correctly. A lot of red below the graph means your safety stock quantity is too high. If the item hits zero too often, your parameters are set too low and you should adjust them.
You can filter on multiple items at once to get a general overview of your inventory bindings. If you are working to reduce inventory, have someone run through your items and look at each profile to spot the ones sitting too high.
How to open the graphical inventory profile in Business Central
From the item card, navigate into the graphical profile and run it. With one example item, the current inventory shows a quantity of 28, and you can follow how it develops over time. By default, this view only reflects your open orders and present inventory.
To include the past, tick the “Include history” checkbox on the request page. The result is a graphical view of the item’s full inventory profile, including historical data, which gives you a much clearer basis for judging whether stock levels are appropriate.
Reading the inventory profile to assess safety stock
The graph tells you quickly whether your safety stock setting works. If the profile stays at a steady, healthy level, the safety stock for that item is likely fine. If there is a lot of red below the graph, the safety stock quantity is too high and you are tying up more capital than you need to.
The opposite problem is just as important. If the item drops to zero quantity too many times, your reordering parameters are set too low. In that case you should change the parameters to avoid running out of stock.
Reducing inventory bindings across multiple items
If you want to lower your inventory, the profile is a practical tool for finding where the excess sits. You can filter on several items and add many items together in the same view to get a general overview of your inventory bindings.
When you are dealing with inventory that is too high, it helps to have someone go through your items and check each profile. Take an example item where the historical data shows a very high inventory even at its lowest point. At some point the picture changes, which usually means someone figured it out and adjusted the reordering parameters. Up until that change, the item carried too high a base inventory and too high inventory bindings. The profile makes those situations simple to spot.
Q&A
How do I include historical data in the inventory profile?
Open the graphical profile from the item card and tick the “Include history” checkbox on the request page. The graph then shows the item’s past inventory levels alongside the current inventory and open orders.
How can I tell if an item’s safety stock is too high?
Look at the graphical inventory profile. If there is a lot of red below the graph, the safety stock quantity is set too high. A profile that stays at a steady, healthy level indicates the safety stock is fine.
What does it mean if an item hits zero quantity too often?
It means your reordering parameters are set too low. You should adjust the parameters so the item does not run out of stock repeatedly.
Can I review more than one item at a time?
Yes. You can filter on multiple items and add many items together in the same view to get a general overview of your inventory bindings.