The quick answer
For an item you are already reviewing, open Inventory Turnover and Inventory Profitability separately. Read movement and margin as two signals, then write down the next question someone should check. Matching the item and dates does not reconcile the reports, and these measures do not set a reorder or pricing policy.
This walkthrough uses synthetic example data. The names Alex Morgan and Example Supply Co. are fictional. The item and amounts are example values too.
Before you start
You need a role that can open both reports, inventory data for the item, and a date range available on each report. Your role, enabled features, subsidiary access, and account configuration can affect which reports and rows you can see. If a report is missing, ask an administrator to check access and account setup.
Use an item you have already selected for review. This walkthrough follows Aster Pump for October 1–31, 2026. The report footer shows the selected range. Set a comparable range in each report, then check other filters such as subsidiary, location, accounting book, transaction type, and report customization. The same visible dates and item still may cover different transactions.
01. Read Inventory Turnover
Go to Reports > Inventory/Items > Inventory Turnover. Find the item row and read the values under Cost, Average Value, Turnover Rate, and Average Days on Hand. In the example, Aster Pump shows $15,000, $7,500, 2.00, and 15.5.
NetSuite calculates Turnover Rate as Cost of Sales divided by Average Inventory Value. Average inventory value is based on month-end inventory values across the period. Average Days on Hand uses the days in the month or months represented by the selected range divided by the turnover rate. For this 31-day October example, 31 ÷ 2.00 = 15.5. Partial months and other ranges can change that calculation. A lower turnover rate generally means slower movement; it does not, by itself, tell you to reorder or discontinue the item.
02. Read Inventory Profitability
Go to Reports > Inventory/Items > Inventory Profitability. Find Aster Pump and read Qty. Sold, Total Cost, Total Revenue, Gross Profit, and Gross Profit %. The example shows 100 units, $15,000 total cost, $20,000 total revenue, $5,000 gross profit, and 25.0% Gross Profit %.
The example arithmetic is $20,000 − $15,000 = $5,000 gross profit, and $5,000 ÷ $20,000 = 25.0%. Gross Profit % is based on selling price or revenue, not cost.
The standard report field is Percent of Total Profit. The captured column labeled % of Total Revenue is blank, and its formula is unresolved. Treat it as account-specific until you inspect the report definition; do not assume it means Percent of Total Profit. Inventory Profitability can show values when the period has invoice or cash-sale revenue. Revenue may post when invoiced while inventory cost posts at fulfillment, so related amounts can land in different periods.
03. Compare the signals
Keep the measures separate. In this example, both reports show $15,000 in a cost column, but matching amounts do not prove that the reports include the same transactions. Their filters, grouping, costing details, and recognition dates can differ. A fulfillment in one period and an invoice in another is one reason cost and revenue may not appear together.
Before you draw a conclusion, compare subsidiary, location, accounting book, transaction scope, and report customization as well as the item and dates. For kits or items with unusual fulfillment and billing flows, inspect transaction detail. Use the reports to decide what to investigate next, not to claim that one report reconciles the other.
04. Record a follow-up
Write down the item, the two displayed measures you want someone to review, an owner, and a specific question. For example: “Ask Purchasing to check Aster Pump on-hand quantity, open supply, and expected demand before the next replenishment review.” Check margin context with the appropriate owner before anyone changes a price.
There is no universal good turnover rate or Gross Profit % in this walkthrough. The example does not change inventory or pricing. Verify on-hand, commitments, inbound supply, service needs, timing, and margin in the relevant records before acting.
Check the result
- You reviewed the same item in each report and recorded each report's date range and other relevant filters.
- You kept turnover and profitability values separate instead of treating the matching $15,000 as a reconciliation.
- You treated the blank % of Total Revenue column as unresolved until its account-specific definition is checked.
- You assigned a follow-up owner and question before making an inventory or pricing decision.
Common questions
What does Inventory Turnover measure?
Inventory Turnover compares Cost of Sales with Average Value for a reporting context. In this synthetic example, $15,000 divided by $7,500 gives a Turnover Rate of 2.00. It describes movement; it does not set a reorder target.
What does Average Days on Hand mean?
It estimates how many days of inventory the turnover result represents. NetSuite uses the days in the month or months represented by the selected range divided by Turnover Rate. In this 31-day example, 31 divided by 2.00 gives 15.5 days. That number is not a universal target.
Why does the same $15,000 appear in both reports?
The turnover report's Cost and the profitability report's Total Cost are separate report measures. Equal amounts do not prove matching transactions, filters, or posting dates. Review the transaction detail and report definitions before treating the values as reconciled.
Why can revenue and cost fall into different periods?
Revenue may post from an invoice or cash sale, while inventory cost may post when the item is fulfilled. If fulfillment and billing happen in different periods, the related cost and revenue can appear in different report periods.
Is % of Total Revenue a standard Inventory Profitability field?
The standard field is Percent of Total Profit. If your report shows % of Total Revenue, check whether it is a custom column or formula and verify how it is calculated. The example's blank cell does not establish a standard meaning.
Is a 25.0% Gross Profit % a pricing recommendation?
No. The synthetic 25.0% is an example result. Pricing decisions need context such as discounts, customer agreements, freight, returns, and your organization's margin goals.
Is there a universal good turnover rate or Gross Profit %?
No. Interpret both measures against the item's history, category, seasonality, supply constraints, and your organization's objectives. These example values do not define acceptable performance.