We have ABC and D classes for our materials. D includes items we do not want to cycle count, and we have checked the Exclude from Cycle Count box on the class setup. We also have Manual ABC checked on those part maintenance screens so the ABC class cannot be changed when running Epicor’s recalculation. That all works fine. The parts do not appear in our cycle counting, and although Epicor suggests ABC class changes in the recalculation report, the classes are not updated when we check the box to Update ABC Codes. All good so far.
But even though the ABC class code remains D on those parts, we have noticed that the recalculation formula includes the usage value of those items in the total for the suggested class. For example, if Epicor suggests changing a part from D to A, it adds the usage value of that item into the overall total for A items. If we exclude those parts, our A items only reflect a usage value of about 60% even though the setting calls for A items to include parts totaling 80% our inventory usage.
How do we exclude the usage value of those D parts from skewing the calculation for our ABC breakdown?