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RMCBIN00 - ABC Analysis for Cycle Counting (Physical Inventory)

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Title

ABC Analysis of Cycle Counting (Physical Inventory)

Purpose

This report runs an analysis for the chosen material types in the cycle counting method of physical inventory.

Prerequisites

Before running the analysis, you must define the valid cycle counting indicators in the Customizing system of Inventory Management and define the percentage allocation of the materials to the individual cycle counting categories.

You can also directly change the percentage values via the indicator Change CC percentages on the initial screen of the analysis.

To set the cycle counting indicator for a material, you need authorization to change material master records (authorization object Material Master: Plant, activity 02).

Features

The analysis takes into account the consumption (usage) or the requirements values of the selected materials for the desired time period. You can decide whether you want to analyze:

• Only materials that have a cycle counting indicator

• All materials; that is, including materials that have no cycle counting indicator.

During the analysis, you can have the system automatically update the cycle counting indicator in the material master record for the selected materials.

Selection

Output

• Material number with short description

• The cycle counting indicator obtained as a result of the analysis

• Previous cycle counting indicator

Choose Edit -> Double-line to also display the consumption or requirements values for each line.

Choose Edit -> New analysis to go to a dialog box in which you can enter other percentages for the individual cycle counting indicators for a new analysis.

Choose Goto -> Counting effort to go to a dialog box in which you can check the counting effort per fiscal year.

Activities

Change cycle counting indicator in the material master record

If you want to change the cycle counting indicator for a material in the corresponding material master record, place the cursor on the material and choose Change CC indicator. A dialog box appears in which you can choose the new indicator. Choose Save to copy the new cycle counting indicator to the material master record.

Example

In the given plant, 200 materials are subject to the cycle counting physical inventory procedure.

In Customizing for Inventory Management, the following percentage allocation has been defined for the plant:

• A materials: 50%

• B materials: 25%

• C materials: 15%

• D materials: 10%

In the cycle counting analysis, the materials are sorted by consumption. After completion of the analysis, the cycle counting indicator is assigned as follows:

• The first 3 materials (sorted in descending order according to consumption) represent 50% of the consumption and have the indicator A.

• The next 12 materials represent 25% of the consumption and have the indicator B.

• The next 49 materials represent 15% of the consumption and have the indicator C.

• The remaining 136 materials represent the rest (10%) of the consumption and have the indicator D.

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