What the Inventory Aging Report Shows
Inventory is typically grouped into age brackets:
0–30 days
31–60 days
61–90 days
91–180 days
Over 180 days (considered slow-moving or potentially obsolete)
Each line item includes key data points:
SKU (Stock Keeping Unit)
Description
Quantity on hand
Inventory value (cost per item and total)
Last sale or activity date
Benefits of Using the Report
Spot slow-moving inventory
Identify items that are not selling and take action (e.g. markdowns, promotions).Improve cash flow
Reduce aging stock to free up working capital.Manage obsolescence risk
Flag inventory at risk of becoming outdated.Enhance inventory control
Use age insights to improve purchasing and restocking decisions.Reduce carrying costs
Lower expenses like storage, insurance, and depreciation.
Where to see and how to export the Inventory Aging Report inside the Luminous system?
Go to Reports - Inventory Aging
To Export, there are two option
By using the "Export" button on the top right of the screen.
By doubling clicking or right clicking on the table/report.
Use Cases by Industry
Retail: Identify seasonal or trendy products that are aging out.
Manufacturing: Track raw materials and finished goods to reduce waste.
Warehousing/Distribution: Optimize storage and identify stock for clearance.
📌 Example Table
SKU | Description | Qty. | 0–30 Days | 31–60 Days | 61–90 Days | 90+ Days |
A001 | Widget A | 100 | 40 | 30 | 20 | 10 |
B002 | Widget B | 50 | 0 | 5 | 15 | 30 |
In this example, Widget B has a large portion aged over 90 days, indicating it may need to be discounted or reviewed.
How Inventory Age Is Calculated?
Formula:
Inventory Age = Current Date – Inventory Receipt Date
Example:
Receipt Date: January 15, 2024
Current Date: April 11, 2025
Inventory Age = 452 days
How to Calculate Average Inventory Age?
Formula:
Average Inventory Age = (Sum of Units × Age of Each Unit) ÷ Total Units
Example:
SKU | Units | Age (Days) | Total Days |
A | 100 | 30 | 3,000 |
B | 50 | 60 | 3,000 |
C | 200 | 90 | 18,000 |
Total Units = 350
Total Days = 24,000
Average Age = 24,000 ÷ 350 ≈ 68.57 days
📝 Calculation Methods to Consider
FIFO (First-In, First-Out): Calculates age based on oldest inventory sold first—ideal for aging reports.
Specific Identification: Tracks items by batch or serial number.
Regular Review: Update reports on a consistent schedule (daily, weekly, or monthly) for accuracy.