The Turns view displays turn information including for each of the last 12 periods, the average inventory quantity and cost, as well as the average value, turned quantity, and total cost.
When calculating turns, the basic math is total cost of good sold (or moved for purposes of serving customers) from stock divided by average inventory. The purpose of the turns measurement is to provide an indicator of how effectively a business is utilizing its investment in inventory to serve its customers.
When calculating the cost of goods for a specific location, transfers to other warehouses and sales of goods to customers are included in the calculation. This value is not the same as the usage number, since usage includes transactions, such as lost sales, which are not relevant to turns. Also, some reductions of inventory are not included in the cost of goods number because they cannot be tied directly to serving customers, e.g. inventory adjustments and returns to a vendor.