ABC Analysis

by Dhyey Consulting Services Pvt. Ltd.

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A Complete solution for ABC Analysis for Inventory management with Dynamics 365 Business Central.

ABC inventory analysis is a commonly used strategy to categorize inventory into “A”, “B”, and “C” classifications based on the Pareto Principle that 80% of sales, cost, inventory value or profit can be attributed to 20% of the products in inventory.


  • ABC analysis ranks items based on three models: Revenue, Gross Profit, Inventory Value (COGS).
  • Revenue: This option will calculate and assign class based on the Revenue/ total Sales amount of quantity invoiced during specified period.
  • Gross Profit: This option will calculate and assign class based on the gross profit (Sales amount - Cost amount COGS) of quantity invoiced during specified period.
  • Value / COGS: This option will calculate and assign class based on the unit cost * total quantity consumed (either in production or sell) during specified period.
  • Detailed statistics of calculated values for each ABC model in total amount, count and percentage values for classified items, revenue generated, gross profit earned, inventory valuation of demand/consumption.
  • Graph and Pie chart demonstrates data of amount and % of Total amount, count and % total items for each class individually and cumulative totals.
  • Preview calculation sheet along with statistics either on-screen or download in Excel format to analyze and confirm before updating Item card and SKU.
  • Update Item card and Stock keeping unit card with ABC class obtained for each model (separate field for each ABC classification: Revenue, Gross profit and Value/COGS)) and Warehouse physical inventory counting period code values.
  • All statistics data in dual figures: count and percentage for each class and ABC model after calculation for review and after updating Item for current status and history.
  • Maintain history of calculated data for each ABC model till next calculation cycle.
  • Configurable setup to define criteria and percentages for each model and class with an accumulation period of calculation.
  • Setup whether to update Warehouse physical inventory counting period code in Item and SKU card, useful for physical counting process.
  • Last updated date information.
  • Run ABC calculation for selected date period.
  • Permission setup to set up user rights.
  • MIS: Statistics with Graphs, ABC Analysis Review, item and Item Category wise review, Unclassified Items.

Supported Editions

This app supports the Essential and Premium edition of Microsoft Dynamics 365 Business Central.

Supported Countries

Canada, India, United Kingdom, and United States. Supported Languages English only.

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