Obsolete Inventory Reserve Percent Lookup
Apply versioned caller aging reserve bands to actual stock cost; no embedded industry obsolescence percentages or automatic physical impairment inference.
Description
Obsolescence reserve rates need a versioned caller policy.
Obsolescence reserve rates need a versioned caller policy. Inclusive aging bands must include an explicit overflow rate.1
The returned values include Stock reserve minor, Total obsolescence reserve minor. The How section below explains the calculation, input rules and interpretation.
When to use Obsolete Inventory Reserve Percent Lookup
Use Obsolete Inventory Reserve Percent Lookup when you need to evaluate the supplied records under the calculation and evidence rules below. No industry reserve rates or physical impairment finding is embedded.
Gather the source balances and explicit accounting policy. Monetary inputs use integer minor units in one currency; for a currency with 100 minor units per major unit, 12345 represents 123.45. One basis point is 0.01 percentage points; 10000 basis points is 100%. Dates and posting signs follow the individual rules below.
How to use Obsolete Inventory Reserve Percent Lookup and understand its results
- Gather the source balances and explicit accounting policy. Monetary inputs use integer minor units in one currency; for a currency with 100 minor units per major unit, 12345 represents 123.45. One basis point is 0.01 percentage points; 10000 basis points is 100%. Dates and posting signs follow the individual rules below.
- Enter stockAgesDays, stockCostsMinor, callerInclusiveAgeEdges, callerReserveBasisPointsByBand using the field table and calculation rules, then run the tool.
- Read stockReserveMinor, totalObsolescenceReserveMinor. The explanation below defines the units, signs, ordering and any flags or placeholder values.
- If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.
| Input field | Meaning | Value type; see rules below | Requirement |
|---|---|---|---|
| stockAgesDays | Stock ages days | list of number | Required |
| stockCostsMinor | Stock costs minor | list of number | Required |
| callerInclusiveAgeEdges | Caller inclusive age edges | list of number | Required |
| callerReserveBasisPointsByBand | Caller reserve basis points by band | list of number | Required |
Enter aligned nonempty nonnegative safe-integer ages/costs, 1–128 strictly increasing nonnegative integer inclusive day edges and exactly one more integer rate than edges, each 0–10000 basis points. Return rounded item reserves and their checked total.
band=first upperEdge≥age, else edgeCount; reserve=roundMinor(stockCost×bandBps/10000) Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.
| Output field | Meaning | Value type |
|---|---|---|
| stockReserveMinor | Stock reserve minor | list of number |
| totalObsolescenceReserveMinor | Total obsolescence reserve minor | number |
{
"input": {
"stockAgesDays": [
10,
100
],
"stockCostsMinor": [
1000,
1000
],
"callerInclusiveAgeEdges": [
30
],
"callerReserveBasisPointsByBand": [
0,
5000
]
},
"output": {
"stockReserveMinor": [
0,
500
],
"totalObsolescenceReserveMinor": 500
}
}Limitations and assumptions
No industry reserve rates or physical impairment finding is embedded.
Numeric inputs, where present, must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Numeric lists are limited to 10,000 entries and string lists to 128 entries of at most 128 characters. Follow any smaller limits above. Missing fields without a declared default, extra fields, wrong value types and violations of the calculation rules are input errors.
Alternative or Complementary methods
Use Aging Method Allowance Matrix Estimate Calculator: An aging allowance applies loss assumptions by bucket and compares the required credit balance with the existing signed allowance. Existing debit balances increase the adjustment. For a complementary task, use NRV Lower Of Cost NRV Inventory Test Tool: Net realizable value subtracts completion and selling costs from expected selling price. Inventory carrying value uses lower cost or NRV with a zero floor.
References
Similar or alternative tools
- Aging Method Allowance Matrix Estimate Calculator
An aging allowance applies loss assumptions by bucket and compares the required credit balance with the existing signed allowance. Existing debit balances increase the adjustment.
- NRV Lower Of Cost NRV Inventory Test Tool
Net realizable value subtracts completion and selling costs from expected selling price. Inventory carrying value uses lower cost or NRV with a zero floor.