Pareto Product Report distributes products into three classes (A, B or C) according to the cost value that each product inventory has in the warehouse. Based on this classification the frequency of counting cycle can be decided (e.g. A products are counted weekly, B products monthly and C products yearly).
Following distribution is used: A products represent 80% value of the warehouse, B - 15% and C- 5%.
- Note. The classification is based on the cost of the product. That is why it is needed to have a Costing Rule validated and the Material Transaction costs of the product calculated up-to-date.
Currency field defines currency in which all monetary values (like Cost, Value) of the report are shown. Field is defaulted to the system currency. Please note that Conversion Rate to the report Currency should be specified for the report to work.
Update ABC button fills in ABC field (updates value if the record exists or creates new record otherwise) of Org. Specific tab of the Product window for the organizations of the report output.
Sample Report Output
Columns to note:
- Quantity: is the current stock of the product (Quantity on Hand) in the warehouse selected.
- Value: that is the sum of all the material transaction costs of the product.
- Cost: this cost is calculated as the ratio between the product value and the product quantity above
- Percentage: that percentage is the ratio between the product value and the Total Value of the warehouse (which is the sum of all report lines).