This report is a valuable tool for tracking how long inventory items have remained unsold or unused. It helps businesses categorize stock by age, identify slow-moving items, and make informed decisions to optimize inventory levels and improve cash flow.
What the Inventory Aging Report Shows
Inventory is typically grouped into age brackets:
- 0–30 days
- 31–60 days
- 61–90 days
- 90+ days (considered slow-moving or potentially obsolete)
Each line item includes key data points:
- SKU (Stock Keeping Unit)
- Product Name, Category and Subcategory
- Quantity in each age bracket
- Inventory value in each age bracket
- Total quantity and total value
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Flag inventory at risk of becoming outdated.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 Insights → 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.