Inventory Items Report Template (ABC Classification, Reorder Point)

An inventory items report is the true mirror of what is happening inside your warehouse. Every item, every carton, every piece on the shelf has a story: when it came in, what you paid for it, how much is left, and when it will run out. When this report is missing, warehouse management turns into guesswork, and capital turns into stagnant goods whose real value no one knows.

In the Saudi market, where the purchasing cycle accelerates and sales channels intertwine between physical stores and online shops, an accurate items report has become the dividing line between the merchant who knows the capital frozen in the warehouse, and the merchant who discovers the loss at year end during the stock count. The difference between them is not the size of the business, but whether there is a system that generates the report in real time and connects it to purchases, sales, and e-invoicing.

This ready-made template gives you the inventory items report structure as it should be: mandatory columns, ABC classification, reorder point, inventory age, and dead stock. Use it as a starting point for your warehouse, or run it directly inside Qoyod and let the system generate it automatically from every purchase and sales invoice.

What an Inventory Items Report Is and What It Must Contain

An inventory items report is an accounting and operational document that lists every item in the warehouse, along with its current quantity, cost, total value, and status. It is not just a quantity sheet, but a multi-layered report that ties the operational side (how much do I have?) to the accounting side (how much is it worth?) and the management side (is it moving? when do I reorder?).

The Difference Between an Items List and an Items Report

An items list is a static file containing product names and codes. An items report, by contrast, contains live data: available quantity, reserved quantity, in-transit quantity, unit cost, total value, item age since last movement, and its rank within the ABC classification. The list tells you what you own; the report tells you the state of what you own.

The Mandatory Content of Any Professional Items Report

• Identity: item code (SKU), Arabic name, English name if available, main category and subcategory.
• Quantities: current quantity, quantity reserved for undelivered sales orders, actually available quantity, unit of measure.
• Value: unit cost, costing method (FIFO or weighted average), total value in SAR.
• Control: reorder point, safety stock, economic order quantity, primary and backup supplier.
• Location: branch, warehouse number, shelf or internal location number.
• Movement: last purchase date, last sale date, inventory age in days, item status (active, dead, expired).

Any report missing one of these pillars is incomplete and unsuitable for purchasing, pricing, or write-off decisions. This is the bare minimum for any electronics store, restaurant, or factory in Riyadh, Jeddah, or Dammam.

The Difference Between the Items Report, the Stock Count Report, and the Inventory Movement Report

Many business owners in Saudi Arabia confuse three completely different reports in purpose and use. Each one answers a different question, and merging them leads to wrong decisions.

Items Report

Answers the question: what do I own right now? It shows the live state of every item in terms of quantity, value, and location. It is used daily for purchasing, sales, and pricing decisions. It is generated in real time in modern accounting systems and updates with every sales, purchase, or transfer invoice.

Stock Count Report

Answers the question: what is the gap between what the system says and what is physically on the shelf? It is performed monthly, quarterly, or annually depending on the nature of the business. It compares the book balance with the physical balance and surfaces shortages or surpluses. Its result feeds into adjustment journal entries that affect the cost of goods sold and net profit.

Inventory Movement Report

Answers the question: what happened to the item over a specific period? It shows every inbound movement (purchase, sales return, incoming transfer) and every outbound movement (sale, purchase return, outgoing transfer, waste, stock count adjustment) with date, quantity, and value. It is used to analyze turnover speed, detect tampering, and trace inventory origins.

Mandatory Columns in the Items Report

Building the report starts from the columns. Every column carries a decision. Removing a single column means losing a specific analytical capability. Below is the minimum set of columns any items report should include in the Saudi market:

Additional Columns That Make a Difference

• Reserved quantity: very important for online stores that reserve goods the moment an order is confirmed and before shipping.
• Monthly average sales: helps calculate the reorder point dynamically instead of using a fixed value.
• Profit margin percentage: surfaces low-margin items that may not be worth keeping.
• ABC classification: a single letter (A, B, C) that summarizes the item’s importance within total value.

ABC Classification of Items

ABC classification is a principle drawn from the Pareto rule: 20% of items represent roughly 80% of inventory value or revenue. Ignoring this classification means giving the same attention to an item worth a quarter of your capital and an item worth less than 0.1% of it. This is a classic management mistake.

How the Classification Is Done

Sort items in descending order by total annual value (annual sales quantity x unit cost). Calculate the cumulative percentage for each item:

• Class A: items that make up the first 70% to 80% of cumulative value. Usually 10% to 20% of the item count.
• Class B: items that make up the next 15% to 20% of value. Usually 30% of the item count.
• Class C: the remaining items. They represent 50% to 70% of the count but only 5% of the value.

Worked Example: an Electronics Store in Riyadh

An electronics store in Riyadh has 350 SKUs with a total inventory value of SAR 1.2 million. After applying ABC, the results were:

• Class A: 52 items (15% of the count) representing SAR 960,000 (80% of the value). Most are smartphones and laptops from well-known brands.
• Class B: 105 items (30% of the count) representing SAR 180,000 (15% of the value). Mid-priced accessories and headphones.
• Class C: 193 items (55% of the count) representing SAR 60,000 (5% of the value). Cables, chargers, cases.

The takeaway: count Class A weekly, Class B monthly, Class C every 3 months. Negotiate hard on Class A to secure better terms, and monitor Class C to clear out dead stock.

Reorder Point and Safety Stock

The reorder point is the quantity at which a new purchase order must be issued. Safety stock is a buffer to handle supplier delays or sudden spikes in demand. Mixing them up or ignoring one leads to either stockouts or excess inventory.

The Core Formula

Reorder point = (average daily sales x lead time in days) + safety stock

Example: an item sells 8 units per day, supplier lead time is 12 days, and the defined safety stock is 30 units:

Reorder point = (8 x 12) + 30 = 126 units

So when the item quantity drops to 126, the system fires an automatic alert that a purchase order should be issued.

How to Set Safety Stock Smartly

• High-demand Class A items: larger safety stock (15 to 30 days of sales) because a stockout means losing customers.
• Class B items: medium safety stock (7 to 15 days).
• Class C items: low or zero safety stock, since storage costs outweigh the cost of being out of stock.
• Items with distant suppliers: increase safety stock to cover shipping and customs variability.

Inventory Aging Report and the Impact of Obsolescence

The inventory aging report classifies items by the number of days since the last sales or purchase movement. Every day without movement is frozen capital and value erosion, especially in fast-changing sectors like electronics, apparel, and food.

Standard Age Buckets

Accounting Impact of Obsolescence

At the electronics store in Riyadh, it turned out that 45 items (with a total book value of SAR 180,000) had aged beyond 180 days. Their actual market value was no longer SAR 180,000, but perhaps only SAR 100,000. The SAR 80,000 gap is an obsolescence provision that must be recorded in the books so the balance sheet is honest. Ignoring this step means inflating profits and showing capital that is not real.

Dead Stock and When It Becomes a Loss

Dead stock is not damaged stock; it is sellable stock that simply is not selling. Its presence on the shelf creates three compounding losses: frozen capital that generates no income, ongoing storage costs (rent, electricity, labor), and a gradual decline in market value over time.

How to Spot Dead Stock Early

• The 180-day rule: any item that has not moved a single piece in 180 days enters the watch list.
• The turnover rule: a turnover ratio below 1 per year (meaning inventory sits for more than a full year) is a strong signal of dead stock.
• The seasonality rule: a seasonal item still on hand more than 60 days after its season ends must be addressed immediately.

Disposal Options

Once dead stock is confirmed, you have three paths: gradual discounting (15% to 30% off), bundling with a fast-moving item, or selling at cost to free up cash. Waiting is not an option. Every additional month means more lost opportunity cost and further erosion of market value.

At the electronics store in Riyadh, 28 dead-stock items were identified with a book value of SAR 95,000. After a 6-week clearance campaign, SAR 68,000 in cash was recovered, SAR 27,000 was written off as a loss, in exchange for avoiding an annual storage cost that would have reached SAR 14,000.

Monthly Inventory Movement Report

The monthly movement report is a detailed historical log of every inbound and outbound flow in the warehouse during the month. Its value is not just accounting, but operational: it reveals patterns, identifies peak times, and surfaces leaks.

Monthly Report Columns

• Opening balance: item quantity at the start of the month.
• Purchases: total quantities received from suppliers.
• Sales returns: what came back from customers and was returned to stock.
• Sales: total quantities shipped out via sales invoices.
• Purchase returns: what was sent back to suppliers.
• Transfers: quantities moved between branches.
• Stock count adjustments: shortages or surpluses after the physical count.
• Closing balance: item quantity at the end of the month.

Monthly Turnover Ratio

Turnover ratio = quantity sold during the month divided by average monthly balance. The higher the ratio, the more active the item. A ratio of 0.5 means you need a full two months to clear the current inventory at the same sales pace. A ratio of 3 means you sell the inventory three times per month, and you may need to increase purchase orders.

How the Report Connects to VAT and E-Invoicing

The Zakat, Tax and Customs Authority (ZATCA) requires, in Phase 2 of e-invoicing, that every invoice be linked to an item identified by code, quantity, and price. An accurate items report is not a luxury, but a direct compliance requirement.

Requirements for Integration with E-Invoicing

• Item code: must be unique and consistent across every sales and purchase invoice.
• Quantity and unit: the unit of measure (piece, kilo, liter, carton) must be standardized across the system.
• Unit price: the sales price in the report must match the price in the XML e-invoice sent to ZATCA.
• VAT 15%: calculated at the item level and shown in the total added value.

How the Stock Count Affects Tax Filings

Any stock count variances affect the cost of goods sold, which in turn affects net profit, which in turn affects income tax (for entities subject to it) and VAT in specific cases (waste, damage, personal withdrawals). Every adjustment must be backed by an internal document auditable by ZATCA. You can review invoicing features on the inventory features page.

The Items Report Across Different Sectors

There is no single template that fits everyone. Each sector has its own quirks in required columns and critical alerts:

Retail

Focus on high volume and variety. The barcode column is mandatory, ABC classification is sharp, and the reorder point is dynamic by season. Stores like the electronics store in Riyadh need to link the item to both the online store and the physical branch at the same time. Learn more about retail solutions on the retail sector page.

Restaurants

Inventory is ingredients, not finished products. The report needs an expiry date column, daily waste percentage, and the cost of the ingredient inside the recipe (recipe cost). Daily counts for fresh items and weekly counts for dry goods.

Pharmacies

Expiry date is critical. The report needs a “nearest expiry date” column in addition to the registration number with the Saudi Food and Drug Authority. Items close to expiry (60 days or less) need an immediate alert to act on.

Manufacturing

Three inventory layers: raw materials, work in progress (WIP), and finished goods. Each layer has its own standalone report. The unit cost of the finished product includes materials plus labor plus indirect manufacturing overhead.

The Most Common Mistakes in Items Reports

The problem is not the absence of reports, but reports generated with fundamental errors that make decisions built on them worse than random ones. Here are the recurring mistakes in the Saudi market:

• Not updating unit cost: the cost in the system stays at the first purchase price from a full year ago, while the supplier has raised the price twice since then. The result: wrong sales pricing and a fake profit margin.
• Mixing quantities across branches: showing the total quantity without breaking it down by branch, so sales assumes the item is available in Riyadh while it is actually in Jeddah.
• Missing reserved quantity: selling a piece already reserved for another order, leading to a cancellation and two lost customers.
• Ignoring the reorder point: setting it once when the item is created, then leaving it fixed even though the sales rate has changed by 4x.
• Manual entry instead of automatic: every manual purchase invoice is a chance for an error in quantity, cost, or code.
• Not accounting for waste: in restaurants and pharmacies especially, inventory is counted as if nothing was lost, so a large gap appears at the count.
• Non-real-time reports: a report manually updated weekly or monthly is not fit for daily purchasing decisions.

How Qoyod Generates the Report in Real Time

Qoyod links every purchase invoice, sales invoice, inter-branch transfer, and stock count adjustment to the item card, so the balance updates second by second without human intervention. This removes the need for late monthly reports and gives you an honest, real-time picture.

Ready Outputs Inside the System

• Full items report: 10 standard columns plus the option to add custom columns.
• Reorder point alerts: automatic notification via email and app when the quantity drops to the alert threshold.
• Automatic ABC classification: recalculated monthly based on actual sales.
• Inventory aging report: a ready 5-bucket classification for export.
• E-invoicing integration: every sales invoice generates an XML invoice compliant with ZATCA.
• Multi-branch and multi-warehouse: view quantity at each location with one-click transfer.

Support and Training

The support team is available 24 hours a day, 7 days a week to help you upload your initial data and set up reorder points and ABC classification. You can review the pricing page to pick the plan that fits the size of your business.

Frequently Asked Questions

How often should the items report be generated?

The report should be real time, meaning it can be generated on demand at any moment with the latest data. The official reference copy for accounting audits is taken at the end of each month, and the physical count copy is generated before and after the stock count to reconcile the numbers.

What is the difference between unit cost and sales price in the report?

Unit cost is what you paid the supplier (including shipping and customs). Sales price is what the customer pays you. The report shows cost because it is the basis for calculating inventory value, not the sales price. The difference between them is the gross profit margin before deducting expenses.

How do I calculate the reorder point for a new item with no sales history?

For a new item, rely on three sources: the supplier’s forecast, a comparison with a similar item in your category, and a conservative trial quantity for the first 30 to 60 days. After that, update the threshold based on actual sales. Do not leave a new item without a threshold for a long stretch.

Do I need a separate report for each branch?

Yes, a separate report for each branch is essential for transfer decisions and local pricing, in addition to a consolidated report at the company level. The split exposes branches that are piling up dead stock while other branches are running out.

When should an item be written off the report permanently?

Write-off happens when damage, obsolescence, or theft is confirmed by an official document (internal committee report, security company certificate). Writing off an item reduces inventory value and is recorded as a damage or loss expense entry, and the VAT impact must be considered in personal withdrawal cases.

Can the items report be exported for ZATCA auditors?

Yes, the report can be exported in Excel or PDF formats compliant with ZATCA requirements. More importantly, the system keeps an audit trail of every change to the item, which is exactly what external auditors look for to prove data integrity.

What is the relationship between the items report and the profit and loss statement?

The inventory value at period end (from the items report) feeds directly into the cost of goods sold calculation: cost of goods sold = opening inventory + purchases, closing inventory. Any error in inventory value shifts net profit on the profit and loss statement.

How do I handle bundled items?

A bundle must be defined in the system with its component items, and each component is deducted from its own inventory when the bundle is sold. Showing the bundle in the report as a single item without breaking down its components hides the actual inventory consumption and causes count variances later.