Page History: Item ABC Codes Update
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Page Revision: Wed, 10 Jul 2013 15:05
General Information
Default Menu Location: Transaction >> Item Control >> Item ABC Update
Screen Name: ABCITEM
Function: Updates items' ABC code based on user-selected criteria such as usage value, on hand value, or usage qty.
 Item ABC Update |
What are ABC Item Codes?
ABC analysis is a business term used to define a technique used to categorize inventory based on a specified criteria.
ABC analysis provides a mechanism for identifying which items are most valuable based on usage and cost. In turn, these groupings allow companies to determine the amount of time, management, and control is spent on particular items.
When carrying out an ABC analysis, inventory items are valued (item cost multiplied by quantity issued/consumed in period) with the results then ranked and grouped into three bands. These bands are called ABC codes. Although most inventory management systems typically use three groups, Adjutant allows the user to create groups for A-Z.
How To Update
First, choose your calculation criteria. We recommend basing your ABC codes on
Usage-Total Value. This will calculate the total cost of items used in production, shipments, and time sheets.
Second, enter your percentages for each code. You can select up to 26 different classifications, but the totals must equal 100%.
Third, if calculating your codes based on usage, enter your date range for the calculations. Usage includes timesheet entries, shipments, and production work order assignments. It does not include transfers or adjustments.
You can (and probably should) exclude non-stock, miscellaneous, and items with Custom BOMs.
Click
Update to update the
Item Master. After the program finishes, it will export the results to Excel (item, descrip, old ABC, new ABC, qty used, total cost, current on hand, current on hand value).
Check the
Export Only box to run all of the calculations, but only export the results instead of actually updating the database.
