How to Calculate Wholesale Inventory Value by Manufacturer

Understanding the wholesale value of your inventory by manufacturer is crucial for effective inventory management, purchasing decisions, and financial planning. This guide shows you how to configure PayHelm's product reports to calculate inventory value based on cost and stock levels, grouped by manufacturer or vendor.

What is Wholesale Inventory Value?

Wholesale inventory value represents the total cost of inventory you have on hand from each manufacturer or vendor. It's calculated by multiplying the unit cost of each product by the quantity in stock, then summing these values by manufacturer.

Formula: Wholesale Inventory Value = Unit Cost × Stock Quantity (summed by manufacturer)

Step 1: Access the Product Reports Dashboard

Navigate to the Product reporting section in PayHelm:

1. Click on Reports in the main navigation
2. Select Products from the available report types
3. You'll see the Product dashboard with your product data

Step 2: Configure Report Columns

To calculate wholesale inventory value, you need to display the right metrics in your report. Click the configuration button to open the Product - Items Display Configuration modal.

In the Report Column tab, ensure these columns are selected:

• Total Costs - Shows the total cost for each product line (cost × quantity)
• Total Items Sold - Helps you understand product movement
• Vendor or Brand - Identifies the manufacturer

Step 3: Add Manufacturer/Vendor Grouping

To group your inventory by manufacturer:

1. In the configuration modal, switch to the Filters tab
2. Select the grouping option that matches your data structure:
   • Vendor - If you track manufacturers as vendors
   • Brand - If you use brand names for manufacturers
   • Category - For product category grouping
3. Click Save to apply your configuration

Step 4: Filter Your Data

Use the filter panel on the left side to refine your report:

• Date Filters - Set the time period for your inventory snapshot
• Source - Filter by sales channel if needed
• Vendor/Brand - Select specific manufacturers to analyze

Step 5: Interpret Your Results

Once configured, your report will display:

• Each manufacturer listed as a separate row or section
• Total Costs column showing the wholesale inventory value for that manufacturer
• Additional metrics like items sold and current stock levels

The Total Costs value for each manufacturer represents the wholesale value of inventory you currently hold from that supplier.

Key Metrics to Monitor

Total Costs - This is your primary metric for wholesale inventory value. It represents the total amount invested in inventory from each manufacturer.

Stock Levels - Compare against sales velocity to identify slow-moving inventory that ties up capital.

Cost per Unit - Track changes over time to monitor pricing trends from manufacturers.

Practical Applications

Purchasing Decisions - Identify which manufacturers represent the largest inventory investment and adjust future orders accordingly.

Cash Flow Management - Understand how much capital is tied up with each manufacturer to better manage working capital.

Vendor Negotiations - Use inventory value data when negotiating terms with manufacturers, especially for payment schedules or bulk discounts.

Inventory Optimization - Identify manufacturers with excessive inventory levels and develop strategies to reduce carrying costs.

Best Practices

1. Regular Reviews - Run this report weekly or monthly to track inventory investment trends
2. Set Thresholds - Establish maximum inventory values per manufacturer to prevent over-investment
3. Compare Periods - Use date filters to compare current inventory value against previous periods
4. Export Data - Save reports for financial planning and forecasting purposes

Troubleshooting

Missing Cost Data - Ensure all products have cost values entered in your system. Products without cost data won't contribute to the total calculation.

Incorrect Manufacturer Assignment - Verify that products are correctly assigned to vendors or brands in your product data.

Zero Values - If you see zero inventory value, check that stock levels are properly synced from your sales channels.

Next Steps

Once you've configured your wholesale inventory value report:

• Save the configuration for quick access in future reporting sessions
• Schedule automated reports if available in your plan
• Combine this data with sales reports to calculate inventory turnover by manufacturer
• Share insights with your purchasing and finance teams

For additional help with product reporting or inventory analysis, explore related articles in our Reports & Analytics section or contact PayHelm support.