Paste stock lines with cost and the date of the last movement. Set your own age buckets and the provision rate for each. Where you also give a net realisable value per unit, the tool takes the higher of the ageing provision and the write-down to that value for each line.
NRV per unit is optional. Dates can be dd/mm/yyyy, dd-mm-yyyy or yyyy-mm-dd.
The buckets and rates are management policy and not a rule. Inventory is carried at the lower of cost and net realisable value under the applicable standard, so support the rates with sales history and check the current requirements.
| Age bucket | Lines | Cost | Provision |
|---|---|---|---|
| 0-90 days | 0 | 0.00 | 0.00 |
| 91-180 days | 0 | 0.00 | 0.00 |
| 181-365 days | 0 | 0.00 | 0.00 |
| Over 365 days | 5 | 8,91,000.00 | 4,45,500.00 |
| Item | Age (days) | Cost | Rate % | Provision |
|---|---|---|---|---|
| Control board CB7 | 2,272 | 3,20,000.00 | 50.0 | 1,60,000.00 |
| Bearing 6204 | 2,194 | 2,50,000.00 | 50.0 | 1,25,000.00 |
| Hydraulic seal H2 | 2,189 | 1,80,000.00 | 50.0 | 90,000.00 |
| Gasket set G9 | 1,994 | 96,000.00 | 50.0 | 48,000.00 |
| Packing film | 2,207 | 45,000.00 | 50.0 | 22,500.00 |
Stock that has not moved for a long time is the most likely to be worth less than its cost. A provision matrix links age to a rate and gives a quick estimate across thousands of lines. It does not replace judgement on individual items, so review the largest provisions and the large old lines that carry a low rate.
Each line is aged from its last movement date to your as-of date and placed in a bucket. The bucket limits and the rate for each bucket are the ones you enter.
The ageing provision is cost multiplied by the rate. If you give a net realisable value per unit, the write-down is cost less NRV times quantity, if positive.
The provision for the line is the higher of the two, so the same amount is not counted twice. Totals are shown by bucket.
Cost of 3,20,000, last moved on 10 January 2025. As-of date is 31 March 2026. Rates are 0, 10, 25 and 50 percent for the buckets up to 90, 180, 365 days and older.
