Alternatively, some retailers include stock in the deduction to find the exact remaining budget:
To build your spreadsheet, you need to understand the fundamental calculation. The standard retail formula for OTB (expressed in retail dollars) is:
Open-to-Buy=(Planned Sales+Planned Markdowns+Planned Ending Inventory)−Planned Beginning InventoryOpen-to-Buy equals open paren Planned Sales plus Planned Markdowns plus Planned Ending Inventory close paren minus Planned Beginning Inventory open to buy excel spreadsheet
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
: The retail value of stock on hand at the start of the period. Alternatively, some retailers include stock in the deduction
A functional OTB spreadsheet should include columns for each month or week of the planning period (typically 6 to 12 months). Essential data rows include:
At its core, OTB is an inventory budgeting system. It calculates the dollar amount or unit count of merchandise a retailer has available to purchase after accounting for current stock on hand and outstanding orders. The Core OTB Formula Essential data rows include: At its core, OTB
: Anticipated discounts or promotions that will reduce the retail value of your inventory.