| Manually Assigned | If this radio button is selected: When parts are created, ABC codes will be assigned based on their class and type and must be updated manually as needed. This must be set up in the Inventory Part Type Setup. |
| $ Estimated Annual Usage | If this radio button is selected: ABC codes will be assigned based on the value of the estimated annual usage and/or component lead time. Users must run the "Calc EAU" and "Calc ABC Codes" programs to refresh EAU and ABC codes. EAU Calculation: Multiply BUY part number standard cost by EAU and divide by the total standard cost, multiply by EAU of all BUY parts. (qty_oh*EAU) of one BUY part/qty_oh*EAU for all BUY parts Multiply MAKE part number standard cost by EAU and divide by the total standard cost, multiply by EAU of all MAKE parts. (qty_oh*EAU) of one MAKE part/qty_oh*EAU for all MAKE parts Sort the records by the values from highest to lowest, then use the rank based on % of values set up for each ABC type to assign the part to each type. For example, type A has 85%, B has 10%, and C has 5%. The program will take the 85% of parts ranked from highest to lowest and assign those part numbers ABC codes of A, B, etc. |
| $ On Hand | If this radio button is selected: ABC codes are assigned based on the value of inventory on hand and/or the component lead time. Users must run the "Calc ABC Codes" program to update and refresh the component ABC codes. Multiply each BUY part number standard cost by qty OH and divide by the total cost of all BUY parts (qty_oh*stdcost) of one BUY part/qty_oh*stdcost for all BUY parts Multiply MAKE part number cost by qty OH and divide by the total cost of all MAKE parts (qty_oh*stdcost) of one MAKE part/qty_oh*stdcost for all MAKE parts Sort the records by value from highest to lowest, then use the rank based on % of values set up for each ABC type to assign a type to each part. For example, type A has 85%, B has 10%, and C has 5%. The program will rank the 85% of parts from highest to lowest and assign those part numbers ABC code A, etc. If lead time is set up and the part has a lead time longer than the setup lead time, the ABC type will be updated to a higher level. For example, if a part is type C but its lead time is longer than the lead time setup for type A, the part will be updated to type A. |
| EAU Factor % | If the user selects $ Estimated Annual Usage, enter in the EAU factor here. |
| Last EAU | The date that the last EAU was calculated. |
| Ignore In Store | Check this box only if you do not want in-store warehouses to be included in the cycle counts, regardless of which "Calculation Based On" is selected. |
| Exclude Issues Older than __ Days from EAU Calculation | Enter the number of days of older issues you would like to exclude from the EAU calculations. The number of days entered in this field will override the standard 30 days. The default is set to 180 days, but it can be changed. |
| ABC Type | The ABC code identifies a part source for inventory parts. A = highest value, B = medium value, and C = lowest value. manexSQL allows up to 36 (0-9 and A-Z) alphanumeric ABC designations. ABC codes are applied to BUY and MAKE parts separately. NOTE: An ABC code needs to be specifically set up for MAKE parts if MAKE parts are to be included in the cycle count. If an ABC code is set up for a BUY part and that ABC code is assigned to a MAKE part, the MAKE part will not be included in the cycle count and vice versa. |
| Description | Definition of ABC parameters. |
| Part Source | This identifies if a part is a MAKE or BUY part. Select the desired part source radio button. |
| Dock to Stock | A "dock to stock" period may be included in each ABC code. Dock to stock is the number of days a part is expected to take to be delivered to the stockroom after the part is received on the user’s dock. This duration may include the amount of time it takes to organize the shipment, count the parts, log the receipt into the inventory system, perform incoming inspection, and physically move the parts to stores. Higher dollar parts may have longer dock to stock times because of increased inspection. Lesser valued parts may not require inspection. Note: manexSQL provides for PO Receiving Inspection and for Discrepant Material Returns (return to vendor). The dock to stock value is taken into consideration for MRP lead time calculations in the projected requirement of the receipt of purchased parts. For example, if the dock to stock time is 3 days and the kit start date is 8/22, then the due date for the BUY components would be 8/19, and the order date would be based on the purchasing lead time to receive the parts by 8/19. The dock to stock time is used to move back the due dates of items purchased in time for kitting. |
| Cycle Count Days | Users may enter the Cycle Count Days of each ABC code. This is used to determine the number of parts to count each day. It is based on calendar days and may need to be adjusted for work days if you will not be cycle counting seven days a week. This field assists in counting all inventory over a period of time. Type A items may be counted completely within each month. Therefore, a list of all A items (the highest dollar value) is generated and randomly divided into twenty days. Each day, 1/20th of the list is counted and checked. Type B items might be checked every quarter and type C items once a year. This is a way to verify the accuracy of stockroom transactions and to take the measures necessary to keep the counts accurate. Enter the ABC types into the appropriate boxes. Note: This field must be populated with a number other than 0. If 0 is entered, the parts will not be included in the cycle count. For example: Imagine you have entered 30 days for a type A part and have a total of 1000 A parts in Inventory. When you run the cycle count, it will calculate how many working days there are from the current date to thirty days after the current date. If it finds you only have 20 working days, the program will calculate 1000 / 20 = 50 and state that the user needs to count 50 type A parts each day. The cycle count will randomly choose 50 type A parts that have not been counted yet. |
| % of Value | The % of Value determines which components will be included in the ABC code based on where their value falls within the total value Pareto (e.g., if A parts have a value of 80%, then all components comprising the top 80% of value will be included. If B parts have a % of Value of 15, then all components comprising the next 15% of value will be included, etc.). |
| Lead Time > | The Lead Time> (LT>) determines which components will be included in the ABC code based on their purchasing lead time. This will include all components with an applicable lead time regardless of the on-hand or EAU value. |
| Dollar Amount | This is the dollar amount tolerance used in the cycle count. For each ABC code, manexSQL provides a cycle count tolerance, which, if exceeded, will result in the reporting of unfavorable results during cycle counting. These tolerances may be an absolute dollar value or a percentage of the inventory being counted. For further information on the cycle count tolerances and what the purpose is of setting them up in manexSQL, see the following article on Cycle Count Tolerance. |
| Percentage | This is the cycle count tolerance percentage. For each ABC code, manexSQL provides a cycle count tolerance, which, if exceeded, will result in the reporting of unfavorable results during cycle counting. These tolerances may be an absolute dollar value or a percentage of the inventory being counted. For further information on the cycle count tolerances and what the purpose is of setting them up in manexSQL, see the following article on Cycle Count Tolerance. |
 | This button will only be available if the screen is in Edit mode. Clicking this button will update the EAU field within the ICM screen. The term EAU (Estimated Annual Usage) may be considered as consumption, depletion, loss, used up, etc. As such, the EAU calculations must include the in-store issues in order to be accurate. If a user is issuing in-store parts to a Sales Order to be shipped, the parts still count as an issue, and so it is necessary to include them when considering plans for future usage. If a user were to deliver all material directly to Work Orders from in-house and these transactions were not included, there would be no calculated EAU. This is why we do not allow in-store issues to be ignored. The only time in-store issues will not be calculated in the EAU is if they are being returned to the vendor through Inventory Handling. |
 | This button will only be available if the screen is in Edit mode. Clicking this button will use the information in the % value and LT> fields to determine which parts should have their ABC codes automatically adjusted. After the ABC codes are updated, those parts will be included with the appropriate group for cycle counting. |
 | This button will only be available if the screen is in Edit mode. Clicking this button will use the information in the % value and LT> fields to determine which parts should have their ABC codes automatically adjusted. After the ABC codes are updated, those parts will be included with the appropriate group for cycle counting. |