Glossary
What is stock ageing?
What a stock ageing analysis shows, how the buckets are built, and how to put one together from your own records.
Updated
In short
Stock ageing groups the goods you hold by how long they have been in stock. SimpleERP has no stock ageing report; build one from the movement ledger and stock list exported to CSV.
Stock ageing is an analysis that groups the goods you hold by how long they have been in stock, in buckets such as 0 to 30, 31 to 90, 91 to 180 and over 180 days. Old buckets point to slow-moving and dead stock, cash tied up and goods that may need to be valued below cost. Auditors and lenders often ask for it at year end.
Stock ageing: a worked example
Lakshmi Steel's 200 LED panel 2×2 on 10 October 2026, treating the oldest units as sold first for this analysis. Value is at the ₹1,145.60 average cost.
| Received | Age | Bucket | Units | Value |
|---|---|---|---|---|
| 28 Sep 2026 | 12 days | 0 to 30 days | 30 | ₹34,368 |
| 20 Jul 2026 | 82 days | 61 to 90 days | 150 | ₹1,71,840 |
| Opening stock, 1 Apr 2026 | 192 days | Over 180 days | 20 | ₹22,912 |
| Total | 200 | ₹2,29,120 |
FAQ
Questions, answered
What is the difference between stock ageing and dead stock?
Stock ageing is the whole picture, every unit placed in an age bucket. Dead stock is one conclusion you draw from it: products in the oldest buckets with no recent sales. A product can be old but still selling slowly.
Why do auditors ask for stock ageing?
Old stock may be worth less than its cost. The ageing shows which items to test for net realisable value under AS 2, and whether the closing stock figure in the balance sheet is fair.
How do I make a stock ageing report in Excel?
List each product's on-hand quantity, then its receipts newest first with dates. Assign on-hand units to the newest receipts until used up, work out days since each receipt, and sum units and value into buckets.
Will SimpleERP add a stock ageing report?
It is not included today. SimpleERP values stock at weighted average and does not keep purchase layers, so ageing is an analysis you build from receipt dates in the movement ledger rather than a figure the system stores.
Related
Keep reading
Dead stock
Goods with no sales for months that are unlikely to sell at full price, tying up cash and godown space.
Read moreStock valuation
Putting a rupee value on goods on hand with a costing method; the figure is the inventory asset and drives cost of goods sold.
Read moreInventory
Stock on hand by warehouse at weighted average cost, with a movement ledger and a low-stock list.
Read more
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