: Inventory that has been purchased but not yet received. 3 Reasons to Use an OTB Spreadsheet
While high-end retail management systems exist, an remains a solid, accessible tool for many small to medium-sized businesses to gain control over their cash flow and inventory levels. What is Open-to-Buy (OTB)? open to buy excel spreadsheet
To build your spreadsheet, you need to understand the fundamental calculation. The standard retail formula for OTB (expressed in retail dollars) is: : Inventory that has been purchased but not yet received
Maximizing Retail Profit with an Open-to-Buy Excel Spreadsheet To build your spreadsheet, you need to understand
: Anticipated discounts or promotions that will reduce the retail value of your inventory.
: Forecasted revenue based on historical data and current trends.
OTB=Projected Sales+Planned Ending Inventory−Beginning Inventory−Already on OrderOTB equals Projected Sales plus Planned Ending Inventory minus Beginning Inventory minus Already on Order Key Components of an OTB Excel Template