Additional Info

Select the Additional Info. tab.

A Ranking,B Ranking,C Ranking, and D Ranking None

Enter a code that specifies this item's ABC ranking by sales amount. Values are:

A: Assign this item to the first (largest) amount ranking.

B: Assign this item to the second (intermediate) amount ranking.

C: Assign this item to the third (smallest) amount ranking.

D: Do not include this item when you run ABC analysis.

Three types of ABC analysis are available: sales, margin, and on-hand value. Within each type of analysis, you can have three groups: A, B, and C.

The ABC code fields contain a percentage that tells the system how to define the A, B, and C groups for categorizing items during ABC analysis. Each group measures a total within the type of analysis.

For all groups, the system compares the appropriate sales, margin, or on-hand value totals of a single item to the appropriate total for all items and calculates the value of each item. An item's value is its percentage of the appropriate total. The system then arranges the values of all items from highest to lowest value and accumulates the percentages. The next step depends on the group:

A group: If an item's value causes the accumulated total to exceed the A accumulated percentage, the system assigns the item to the B group.

B group: When the accumulated total reaches the percentage that you entered for items in the A group, the system continues adding values until it reaches the percentage that you entered for items in the B group. The system assigns all items for which the value falls between the A and B percentages to the B group.

C group: If an item's value causes the accumulated total to exceed the B accumulated percentage, the system assigns the item to the C group. The percentage that you usually enter for the C group is 999.