In short
Applies to: Trading and manufacturing business owners and accounts teams
- Use time in stock to flag items for review, then check demand, condition, ownership and likely recovery.
- An old item is not automatically worthless. Decide whether to use, return, sell or investigate each material item, with a named owner and a review date.
A stock ageing report may identify material received six months ago, but it does not tell you what to do with it. The item might be a usable spare, a customer-specific component awaiting a repeat order, damaged packing material or a discontinued product. Each needs a different response.
Make the report explainable
Choose a review date and define the age basis: receipt date, batch date or last movement. A transfer between stores can make an old item appear new if the report measures only the latest posting. Reconcile total quantity and value to the stock records, then check a sample against physical stock and supporting receipts.
Ask four questions about each material item
Can it be used against a confirmed requirement? Is its physical condition acceptable? Is there a realistic sale or return route? Who will decide the next action and by when? For a trading business in Vellore or a manufacturing unit in Ranipet, these questions can turn an unread spreadsheet into a monthly operating discussion.
Keep value assessment separate from age bands
AS 2 measures inventory at the lower of cost and net realisable value. Net realisable value considers estimated selling price less completion and selling costs. An age band alone does not establish that value. Keep evidence such as recent comparable sales, completion estimates and disposal quotations. Apply the relevant accounting framework, including the specific treatment of materials held for production.
For example, a discontinued finished item has a recorded cost of ₹50,000. Supported expected selling proceeds are ₹43,000 and necessary selling costs are ₹3,000, with no further completion cost. The illustrated net realisable value is ₹40,000. That assessment comes from evidence, not an automatic “over 180 days” percentage. The figures are fictional and do not establish a policy for every stock category.
Give the report an owner
Classify actions as use, return, rework, sell, investigate or retain with a recorded reason. Assign a responsible person and target date. Review whether the last month’s decisions happened before adding another list of old stock. Separate management actions from any accounting adjustment; authorised review is needed for both.
Use the downloadable ageing register for a focused review. Do not upload customer drawings, confidential price lists or inventory files through the general website enquiry form.
தமிழ் சுருக்கம்
நீண்ட நாட்களாக நகராத சரக்குகளுக்கு இருப்புக் காலப் பட்டியல் (Stock Ageing Report) மட்டும் போதாது. தேவை, நிலைமை, உரிமை மற்றும் மீட்கக்கூடிய மதிப்பை ஆய்வு செய்து, ஒவ்வொரு முக்கியப் பொருளுக்கும் நடவடிக்கை, பொறுப்பாளர் மற்றும் மறுஆய்வு தேதியை நிர்ணயியுங்கள்.
Practical next step
Download the working record — CSV and record the assumptions and follow-up actions.
Sources
This article is for general information only and does not constitute professional advice. Please consult a qualified professional before acting on it.
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