Following on: ABC Code - Epicor ERP 10 - Epicor User Help Forum
I am looking to setup ABC codes. I understand they are defined by warehouse. Are they also defined at the part level? I can set the ABC code in Part > Sites > Warehouses > Cycle Count. I can also set it in Warehouse Maintenance.
If I understand correctly, a part can be placed into any warehouse, but it can only be assigned by default to one warehouse. So when we define the ABC code by warehouse, all the parts in the warehouse get the same code. Is that right? Are there other places to define the ABC codes? I understand we can also set a high-level default ABC code in site config. This is only used when no other ABC code is documented for a part/warehouse.
I have run the calculated ABC codes report, and it is huge! (3000+ pages) I didn’t force code updates yet.
I read through the inventory management users guide, but the section on ABC codes didn’t really clear things up. Can someone help me understand the best way to setup ABC codes? I guess I am most confused by why the cycle count is in the warehouse section of the part. Is it so we can define different cycle counts for the part based on which warehouse it is stored in?
one reason there may not be as much documentation on ABC Codes is because it is generally understood knowledge in the inventory world. There are multiple articles on the internet about the subject such as this one: ABC analysis - Wikipedia
In Kinetic, we do not limit you to only three ABC Codes… you could have 10, 15, 26 codes (but that is getting rediculous). very often I have created A, B, C, and maybe D for Do Not Count. or N for No Count.
the calculate ABC Codes “report” serves as a dual purpose function. if you run report only, then it will show what the old (current) abc is, and what it will become. If you run with the update option, it will then change the values.
ABC Codes is run for the entire site, but depending on if you calc by Warehouse or Site, the system will do the calculation differently… but in either case, the system finds the top X percent of parts a assigns them to the A code.. then the top Y% and assigns B, and the rest goes to C (unless you have more than 3 codes).
You can also manually override the abc codes in part warehouse. This allows you to set an “important” item to “A”, or something that might have a high volume that WOULD be an A can be reassigned to a C or Do Not Count code for whatever reason you want to override.
Do we define the x and y percentages someplace? Or is it an even split?
Also, how is the rank calculated when running recalculate ABC codes? I see it is based on inventory value. What else goes into the rank?
They are also in the ABC Code maintenance too.. but the ABC code version is at the company level. If you dont define it in the SITE config as @gpayne showed, then it falls back and uses the values in the ABC Code table.
I typically say to populate and use ABC code table (since this is required) and only populate the site version if there is a big difference. this makes maintenance easier.