Purpose: The spares monthly report allows you to quickly access your monthly spares usage data. It is often used to report to finance at the end of the month. It is used to calculate your spares inventory turns, which is an industry standard metric used to determine how well your storeroom is managed. That is to say, if you are consuming parts in alignment with the amount of time they are waiting in your warehouse or spares locations, and if you are ordering to sustain the minimum levels necessary to run efficiently without carrying unnecessary material costs.
How to Run:
Update the report form:
Fiscal Day Begins - This field allows you to select what day you start your month from a financial tracking perspective. Most plants who follow a standard calendar month will set this to (1).
Date Range - Pick the range of time you wish to run. Common date ranges are year to date, last month, and last year.
Click the "Display Results" button when finished updating the report form.
Viewing the Spares Monthly Report:
Begin Period - This is the date that you have set to your "Fiscal Day Begin" from the report form.
Period End - This is the last day of the fiscal month end or the day prior to the fiscal day begin.
Receipts - These are the parts that are received into L2L when using the L2L spares order/receipt functionality. This doesn't apply if you are manually or automatically syncing with other systems as your spares master. (Sum for date range)
Consumption - This is the usage of parts consumed against dispatches, work orders, or checked out via "Request Spares" from the main menu. (Sum for date range)
Obsolete Parts - If your spares manager obsoletes parts in the spares inventory control screen, this report will post the cost of the total part costs obsoleted in that date range.
Inventory Adjustments - This field displays the sum of the write off or write on inventory from your cycle counts of the current inventory. When the quantity is changed in the inventory control screen for each bin location, the changes will post to this column.
Part Order Cost Adjustment - Once parts are received in L2L, you can edit the order by opening it from the individual part in inventory control. Once the order is open, if the cost is changed for a previously received order, the cost difference will be posted as a "Part Order Cost Adjustment"
Inventory (End of Period) - This displays the total cost of inventory on-hand at period end date
Consumption Over Previous 12 Months - This field displays the total consumption cost of all parts over the past 12 months. This is a key metric in determining turn rate.
Turn Rate - This is the measure of how many times your inventory turns on average over a 12 month period. It is calculated by (Consumption over previous 12 mo./Inventory EOM)
Key Point - If you are just starting to use L2L to manage your spare parts, you can manually enter you spares monthly report data so that you won't need to wait 12 months to start using our turns metric. You can enter this data by using our Spares "Daily Cost History" page along with the Add New + option on that page to enter the inventory values for the period end of each month.
Key Point - The Report runs off the Inventory Number for the first of the month, so if you make an inventory adjustment in the middle of the month, you will see that reflected in the following month's report. The report uses the on hand inventory number on the 1st, as well as receipts, while subtracting consumption to compute the on hand reported at the end of the period.