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Author's profile photo G Srivastava

Believe It or Not – II

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          There are many scenarios in which programmers have to analyze the entities related to logistic material management. The ABC analysis is one such kind of tool provided by the SAP. There are different processes in which this analysis can be implemented. Few examples to support the usage in the business scenarios are as follows

  • It gives us an overview of the production orders in plant incurring highest actual cost.
  • It helps us in picking out most valuable or least valuable material when we use it in inventory aspects. Thus making stock management more efficient.

          According to the definition:

 

“ABC Analysis is the term used to define the categorization technique often used in Material Management. During the analysis we measure the item value (item cost multiplied by quantity issued/consumed in period). According they are ranked. The ranking is in terms of ABC codes hence called ABC Analysis.”

 

         The classification is done on the following basis:

 

A class             80% of total value                     20% of total item

B class             15% of total value                     30% of total item 

C class               5% of total value                     50% of total item

         We can sort it according to ascending or descending order.

        To know more about ABC Please check out this SAP Help Document

ABC Analysis and Document ABC.

The TCODE RSDMWB can be used for the ABC Analysis. Hope you enjoyed reading.

Have a best day ahead.

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