Setting Up Large Customers

Access the Customer Master Revision form.

Select the Credit tab.

ABC Code Sales

Enter A in this field.

The ABC code indicates an item's ABC ranking by sales amount. During ABC analysis, the system groups items by sales amount in descending order. It divides this array into three classes called A, B, and C. The A group usually represents 10 percent to 20 percent of the total items and 50 percent to 70 percent of the projected sales volume. The next grouping, B, usually represents about 20 percent of the items and 20 percent of the sales volume. The C class contains 60 percent to 70 percent of the items and represents about 10 percent to 30 percent of the sales volume. The ABC principle states that you can save effort and money when you apply different controls to the low value, high volume class than you apply to improve control of high value items.

You can override a system assigned ABC code on the Item/Branch Plant Info. form (W41026A) on the Additional Info. tab.