To define an ABC compile:You can define and compile an ABC analysis for your entire organization or for a specific subinventory within your organization. You choose the compilation criterion, the scope of your analysis, the cost type to use in determining item values, and any additional information that may be conditionally necessary, based on your compilation criterion. The combination of all these parameters constitutes an ABC compile header, identified by the ABC compile name. Use this name to identify any activity pertaining to this ABC analysis.
To define an ABC compile:Navigate to the Define ABC Compile window.
Enter a unique name for the ABC compile.
Select the content scope to determine the content level of items to include in the compile:
Organization: If you select organization, Oracle Inventory includes all items defined for your current organization in the ABC compile, even those with zero cost or zero quantity.
Subinventory: If you select a particular subinventory, Oracle Inventory compiles all items whether or not they have the item/subinventory relationship set up. However, if the criterion is associated with MRP/DRP planning (MRP/DRP Plan Name), you need to ensure that items are associated with their respective subinventory when you run an ABC compile specific to a subinventory. See also: Assigning Items to a Subinventory or Assigning Subinventories to an Item.
Attention: You cannot compile an ABC analysis for a subinventory that is defined as a non-quantity tracked subinventory. You can however use non-asset (expense) subinventories for which you track quantities.
Select the valuation scope for determining the ranking of items. If you restrict your ABC compile to items within a particular subinventory, you have the option of valuing your items across all subinventories in the organization or just the one restricted for the ABC compile.
For example, item WIDGET1 has an on-hand quantity of 5 units in subinventory STORES1. The same item also exists in other subinventories in your organization, for a total on-hand quantity of 30 units in the entire organization. Item WIDGET2, has an on-hand quantity of 10 units in STORES1 and a total on-hand quantity of 20 units in the entire organization. You choose to compile your ABC analysis based on Current on-hand quantity.
If you restrict your ABC compile to subinventory STORES1, both WIDGET1 and WIDGET2 are included in the ABC analysis since they both exist in STORES1. However, the value to use is determined by what you choose in the Valuation Scope field on the Define ABC Compile window. If you choose to restrict valuation to the subinventory, Oracle Inventory uses 5 units for WIDGET1, 10 units for WIDGET2, and ranks WIDGET2 higher than WIDGET1. However, if you choose to value the same items across the organization, Oracle Inventory uses 30 units for WIDGET1, 20 units for WIDGET2, and ranks WIDGET1 higher than WIDGET2.
Additional Information: Ranking must be done at the Organization level if you did not select a subinventory in the Content Scope field.
Select the compile specification criterion that defines the rank of a particular item in the ABC compile. For example, if you select Current on-hand quantity as your criterion, an item with an on-hand quantity of 10 units will have a higher ranking than another item with a quantity of 5 units. If you select the Current on-hand value criterion, and the first item from above has a cost of $10 per unit and the second item from above has a cost of $25 per unit, the second item has a higher value than the first item since Oracle Inventory compares $100 ($10*10 units) to $125 ($25*5 units).
| Value | Description |
|---|---|
| Current on hand quantity | Use the current on-hand quantity of inventory. Assign the sequence number by descending quantity. |
| Current on hand value | Use the current on-hand quantity of inventory times the cost for the cost type. Assign the sequence number by descending value. |
| Forecasted usage quantity | Use the forecasted usage quantity. Assign the sequence number by descending quantity. |
| Forecasted usage value | Use the forecasted usage value based on the forecast quantity calculated and the cost type you specify. Assign the sequence number by descending value. |
| Historical number of transactions | Use the historical number of transactions (transaction history) for the time period you specify. Assign the sequence number by descending number of transactions. |
| Historical usage quantity | Use the historical usage quantity (transaction history) for the time period you specify. Assign the sequence number by descending quantity. |
| Historical usage value | Use the historical usage value (transaction history). This is the sum of the transaction quantities times the unit cost of the transactions for the time period you specify. Assign the sequence number by descending value. |
| Item unit cost | Enables the ranking of ABC compile items to be based on the item's unit cost. |
| MRP demand usage quantity | Use the MRP demand usage quantity. Oracle Inventory sums the MRP gross requirements for the MRP plan you specify. Assign the sequence number by descending quantity. |
| MRP demand usage value | Use the MRP demand usage value. Oracle Inventory sums the MRP gross requirements for the MRP plan you specify. The value is derived from the item cost type you choose in the ABC compile form. Assign the sequence number by descending value. |
| Previous cycle count adjustment quantity | Use the previous cycle count adjustment quantity. Oracle Inventory sums the value of all cycle count adjustments since the last ABC compile date. Assign the sequence number by descending quantity. |
| Previous cycle count adjustment value | Use the previous cycle count adjustment transaction value. Oracle Inventory sums the value of all cycle count adjustments since the last ABC compile date. Assign the sequence number by descending value. |
Oracle Inventory uses the compile criterion to value the items you include in your ABC compile. After determining each item's compile value, Oracle Inventory ranks all the items in your ABC compile.
Enter a cost type.
You can select a value here only if you selected Current on-hand quantity, Current on-hand value, Forecasted usage quantity, Forecasted usage value, MRP demand usage quantity, or MRP demand usage value in the Criterion field. If you are compiling by quantity criterion, the cost type is used for reporting purposes only.
Select an MRP forecast name.
You can select a value here only if you selected Forecasted usage quantity or Forecasted usage value in the Criterion field.
Select an MRP plan name.
You can enter a value here only if you enter MRP demand usage quantity or MRP demand usage value in the Criterion field.
Enter a start (from) date.
You must enter a value in this field if you choose an option other than Current on-hand quantity or Current on-hand value in the Criterion field.
Enter an end (to) date.
You must enter a value in this field if you choose an option other than Current on-hand quantity or Current on-hand value in the Criterion field
Save your work.
To run an ABC compile:Navigate to the ABC Compiles window.
Select an ABC compile and choose the Compile button. This submits a request to run the compile program.
To view ABC compile results:Navigate to either the ABC Compiles window or the Define ABC Compile window.
Click View Compile from the Tools menu to display the ABC Compile Items window.
To print the ABC Descending Value Report:Navigate to either the ABC Compiles window or the Define ABC Compile window.
Choose Print Compile from the Tools menu.
Oracle Inventory uses the compile criterion to value the items you include in your ABC compile. After determining each item's value, Oracle Inventory ranks all the items in your ABC compile in descending order to produce the ABC Descending Value Report. You can use this report as a guide in assigning your items to ABC classes.
