ABC Code

The ABC code lets you rank items according to annual domestic currency usage. Items with high unit cost and low annual usage could be classified the same as items with low unit cost and high annual usage. A typical breakdown of the categories might reflect that 20% of the items would fall into the A classification (highest annual domestic currency usage), 30% in B, and 50% in C (lowest annual domestic currency usage).

If the item falls into the category for the highest annual domestic currency usage, enter A. If it falls into the middle category, enter B. If the item falls into the category for the lowest annual domestic currency usage, enter C.

The ABC code is part of the selection criteria on several of the Inventory reports allowing you to view and control only those items (class A) that have high annual domestic currency usage.