Overview

This guide outlines the process of running reports in EdgePulse.biz to assist in the calculation of Open to Buy (OTB). OTB is a crucial financial planning tool that helps businesses manage stock purchasing decisions by balancing planned sales, inventory levels, and purchasing capacity.

Summary

To calculate OTB, you need reports that provide:

• Current Stock Levels — Stock Reports
• Historical Sales and Inventory Data — Department Comparison Report
• Planned Sales Goals — Sales Goals Report

Each report should ideally be run per store to assess individual store performance and department-level OTB. Access to EdgePulse.biz is required, and appropriate permissions must be in place.

Best Practices

• Run all reports per store and per department for more accurate OTB calculations.
• Compare department-level performance to understand stock turnover trends.
• Review historical discounting patterns to assess markdown trends.
• Maintain an OTB plan that aligns with cash flow and purchasing cycles.
• Adjust purchasing decisions based on real sales performance versus planned sales.
• Plan purchases throughout the year and avoid buying a full year's worth of stock in one order to better manage cash flow and inventory turnover.

Running Required Reports

1. Stock Report (Current Stock Level)

This report provides the total cost of stock currently held per department and for the business.

1. Open and log in to EdgePulse.biz.
2. Navigate to Reporting > Inventory > Standard.

Inventory reporting menu — Reporting > Inventory > Standard

3. In the QOH field, select QOH > 0.

QOH filter selection

4. (Optional) Select a specific store in the Store field to run the report for an individual location. Leave all stores selected for a business-wide report.

Store field selection

5. Go to the Advanced tab.

Advanced tab

6. Click Clear on the Stock Types section and select only:

• Stock
• Assembled
• Custom

Stock Types filter options

7. Click Show.
8. In the grid screen, drag the Dept. Name column into the grey box labelled 'Drag here to set row groups'.

Drag column to set row groups

9. Review the Total Cost (Tot. Cost) column for current stock values per department, and the business total at the bottom.

Total Cost column in the grid view

2. Department Comparison Report

This report provides a three-year comparison of sales, cost of goods sold (COGS), inventory levels, gross profit (GP), and discounting trends.

1. Open and log in to EdgePulse.biz.
2. Navigate to Reporting > Management > Department.

Management reporting menu — Reporting > Management > Department

3. In the Base Selection screen, ensure the date range is set to 12 months, ending at the most recent complete calendar month.
4. (Optional) Select a specific store in the Store field to run the report per store. Leave all stores selected for a business-wide report.

Base Selection screen with date range and store filter

5. Click Show.
6. Focus on the following columns:

• Sale $k — Total sales in thousands.
• % of Sales$ — Percentage of total sales.
• COGS $k — Cost of Goods Sold.
• Inven. $k — Inventory value.
• GP $k — Gross Profit.
• % of GP$ — Gross Profit Percentage.
• Disc. $k — Discounts given.
• Disc. % — Percentage of total discounts.

Department Comparison Report column overview

7. Review the data per department. For overall business totals, see Group Totals at the bottom.
8. Use the Period Comparison to assess historical performance:

• Period A (25–36 Months): The earliest of the three periods, covering a full 12-month span two to three years before the report's end date.
• Period B (13–24 Months): The middle period, covering a full 12-month span one to two years before the report's end date.
• Period C (1–12 Months): The most recent period, covering the last 12 months up to the report's end date.
• +/- L/Yr: Shows the difference between Period B and Period C to highlight changes in performance from the previous year.
• % +/- L/Yr: Displays the percentage change between Period B and Period C to indicate growth or decline.

Period comparison columns

3. Sales Goals Report

This report helps determine planned sales and compare actual performance against sales targets.

1. Open and log in to EdgePulse.biz.
2. Navigate to Performance > Store.

Performance menu — Performance > Store

3. Select Store and Store Manager.
4. Ensure the Review End Month matches the end date used in the Department Comparison Report.
5. Click Go.
6. In the sections available, select Sales Goal Contributions.

Sales Goal Contributions section

7. Wait for the Sales Goal Contribution module to load.
8. Change the radio button from Accumulative to Monthly.

Monthly view of the Sales Goal Contribution module

9. Review the key metrics:

• Actual Sales $k — Actual sales performance.
• L/Yr's Sales $k — Last year's sales performance.
• Variance $k — Difference between actual sales and last year's sales.

Key metrics in the Sales Goals Report

10. Repeat for each store.

Using the Reports to Calculate OTB

Using the reports above, apply the OTB formula:

OTB = Planned Sales + Markdowns + Planned End Inventory – Current Inventory

• Planned Sales: Use the Sales Goals Report.
• Markdowns: Identify discounts in the Department Comparison Report.
• Planned End Inventory: Set based on inventory planning.
• Current Inventory: Use the Stock Report.

By analysing trends in these reports, businesses can adjust purchasing decisions, control cash flow, and optimise stock levels per store and department.

By following this process, businesses can effectively plan their stock purchasing strategy and ensure financial stability.