Name This box shows an ABC classification for inventory items. You do not need to use the letters A, B, and C to represent the classification. You can enter any name up to 50 characters long that is meaningful to you. If this box is left blank, an error message will appear. The ABC classification identifies how often the item should be physically counted. “A” items have a high annual usage cost and need to be counted the most frequently. “C” items have a low annual usage cost and need to be counted the least frequently. There are generally accepted formulae to determine the ranking of an item, but it is usually a combination of the number of inventory turns and the item's value. For example, either an item that has low annual usage but a high dollar value or an item with high annual usage and a low dollar value could be an “A” classification. Since the annualized usage cost in both situations is high, the item is of highest importance when performing physical counts. Monitoring these items more closely can result in significant cost savings. See Also Description The description of the item. You can use this box to include any additional details.
