The INV Aging report provides a detailed analysis of inventory age, categorizing on-hand stock into time buckets (e.g., 0-30 days, 31-60 days, 180+ days). This is a critical tool for identifying slow-moving and obsolete inventory (SLOB), calculating inventory reserves, and managing working capital. It helps organizations understand not just how much stock they have, but how old it is.
- Obsolescence Provisioning: Finance teams use this report to calculate the "Inventory Reserve" or "Write-down" required for old stock (e.g., "Reserve 50% for items older than 1 year").
- Warehouse Space Management: Identifies old stock taking up valuable warehouse space, triggering disposal or discount sales.
- Working Capital Optimization: Highlights capital tied up in non-performing assets.
- FIFO/LIFO Analysis: Helps validate that the First-In-First-Out (FIFO) flow is actually happening physically.
MTL_ONHAND_QUANTITIES_DETAIL: The primary source of current on-hand stock.MTL_MATERIAL_TRANSACTIONS: Used to trace the receipt date of the items (especially for FIFO logic).CST_COST_GROUPS: Used for costing context.AR_AGING_BUCKETS: Reuses the AR aging bucket definitions to define the time ranges.
- FIFO Logic: The most complex part of this report is determining the "age" of commingled stock. Since Oracle Inventory (without WMS/LPNs) doesn't always track the specific receipt date of a specific unit, the report often uses a FIFO algorithm: it looks at the current on-hand quantity and "walks back" through the receipt history (
MTL_MATERIAL_TRANSACTIONS) to attribute the stock to the most recent receipts. - Bucket Allocation: Once the age is determined, the quantity and value are allocated to the appropriate bucket (e.g., 0-30, 31-60).
- Valuation: Multiplies the quantity by the current item cost (from
CST_ITEM_COSTSorCST_QUANTITY_LAYERS).
- Buckets Days: Defines the aging intervals.
- Cost Group: Filter for specific cost groups (Project Manufacturing).
- Category Set: Filter by item category (e.g., "Finished Goods").