THIS SECTION IS MANAGED BY FINANCE 

Use the Following Path: xmC>Material Management > Inventory Management > General Operations > Calculate ABC Codes

Use Calculate ABC Codes to perform warehouse or site-specific stock valuation calculations, produce a report with suggested ABC code assignments and (optionally) assign ABC codes to part records in the warehouses associated with specified sites. You normally run this function prior to processing cycle and physical inventory counts. If you do not use cycle counting for inventory count processing, you do not need to run this function.

Calculate ABC Codes (optionally) assigns ABC coding to parts by descending level of usage, based on stock valuation in a user-specified historical usage period. These classifications indicate that a small percentage of the items usually represent the bulk of the inventory cost. This is known as Paretto's law or the 80/20 rule. Class A normally includes items with the highest requirements value, Class B a lower value, and Class C, with the least value. Refer to ABC Code Assignment and Stock Valuation Calculations for specific details on how the program assigns ABC codes to part/warehouse records. If required, you can use the Parts Missing ABC Code Report before running this program to view the part records that do not have assigned ABC codes.

Important: ABC codes must be defined in ABC Code Maintenance before you run this program.

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