Classifying products

The information you set up in ABC Classification is used to calculate the inventory classification. We recommended you schedule your product classification to occur before you purge history files. For example, you may be removing records once a year. If so, classify your products before you delete records so that you have an adequate history base for the classification.

You may be classifying products by Bin Hits. If so, the classification does not look at bins that belong to work centers, receiving docks, or a warehouse zones for damaged, discrepancy, or cross dock items. Use these instructions to stratify or separate inventory into classes.

Note: If you do not implement the end-of-day processing function, use the instructions in Generating system cycle counts. You can manually create cycle counts using the product or bin ABC Classification rotation method. Generating system cycle counts
Note: On the Inventory Count Setup screen, the days in the rotation represent the days your End of Day processes run.
  1. Select TWL Configuration > ABC Classification.
  2. In the Search pane, specify a TWL warehouse.
  3. Specify this information:
    Classify By
    Select Item Activity or Bin HitsGenerating system cycle to indicate the method for classifying inventory.
    Minimum Count Quantity
    Specify the minimum number of items that qualify for ABC Classification. An item or bin may not meet this level. If not, that item or bin is skipped during the classification process and is assigned as a D class item or bin.
    The Minimum Count Quantity is affected by the setting in parameter 3614, Minimum County Qty.
    A%, B%, C%, D%
    In the classification percentages, specify the percentages for your operation. The sum of the percentages must equal 100%.
    The classification process converts items that did not qualify for any other class [A, B, or C] to class D. Class D also includes dead stock, nonstocks, items with a blank class, and labor products.
    Classification Time Period
    Specify a value in the Recalculate Every field and select Days, Weeks, or Months to define the frequency in which TWL is to recalculate inventory.
    Classification By Item Activity Time Period
    Indicate the amount of historical data to use in the classification.
  4. To include inactive products in the classification, select the Include Zero Activity Items option. This option is affected by the setting for parameter 1096, ABC Classification.
  5. In End of Day Processing, select Enable ABC Classification - Report Only. This option is linked to parameter 3601, Printing ABC Report. When you select this option, you are also activating the parameter. If you do not want to print the ABC Report, clear the option.
  6. Select the Update ABC Values for Items or Bins option to update the Item master record with the new classifications. This option corresponds to parameter 3602, Updating ABC Table.
  7. Click Save. A warning is displayed if you try to run the Calculate Pending ABC function without first saving the new values.
  8. In the toolbar, click Calculate Pending ABC to access the TWL Calculate Pending ABC Utility Report. Use this report to view the effects of your settings or changes before applying the changes. Ensure you review any messages you receive before applying changes.

    Make additional changes as necessary. You can run Calculate Pending ABC multiple times before the next calculated date.

  9. When you are satisfied with the effects of the changes, click Apply Pending ABC to apply the changes.