ABC Analysis of the materials (MC40)

Hi,
What is the meaning of analysis strategy in the report MC40 (Usage based ABC analysis).
Regards,

Hi Rajan,
The report checks for the past usage of the material & based on this will compute the ABC curve. This analysis is normally done when you do not forsee much changes in the consumption pattern, then this report is helpful, as the classification will have a long term meaning.
But if the conumption pattern is changing or going to change in the future, then it is better to run MC41, where-in the future needs are considered & this will give you a better classification of components.
Eg: Mtl A which had no consumption or very little in the past might end up as C when you run MC40, but the reality is, this part will be in great need in the future & so MC41 makes better approach.
Hope the above was helpful.
Regards,
Vivek

Similar Messages

  • ABC Analysis TCode:MC40

    Is there any way to ignore the Consignment Material (K) while running the ABC Analysis using T-Code MC40 ???
    Your response is highly apperciated.

    Dear,
    Try this to get all stock material list using transaction MB52. In special stock select "Not equal to K (Consignment stock). This will gives you a report of stock materials exists in plant and storage location - excluding consignment.
    Using transaction MC40 insert this excluded list and run the ABC analysis.
    I found this only solution for this.
    Regards,
    Syed Hussain.

  • ABC Analysis report

    Hii all,
          i am using MC40 and MIBC for  ABC Analysis report.
    few materials, we are using very frequently, even in report its showing ZERO as a total value n total stock value.
    please suggest me, why this report is coming wrong for few materials.
    Thanks
    nisha

    I think you are mixing a couple things here and loosing the focus for your initial problem,
    OMJJ settings of movement types are general settings. I really wonder why you have different values there in standard movements 101 and 201 than  the the predefined values given by SAP. I never had to change that in the systems I have worked with.
    a 101 is by design a planned movement (unplanned receipts are made with 501) hence the consumption control has a G  to control the consumption update (which a tab in additional data of material master). G means always update planned consumption.
    But this is only done if the movement is made agains an order with account assignment, otherwise it will post to stock (which is not a consumption)
    The second consumption indicator in OMJJ  folder "update control" defines to which consumption account the posting is made. the 101 movement takes the decision from the account assignment category, hence you find an indicator for each accounting type there.
    a 201 movement is by design a consumption movement. the general consumption is set to R, which decides that it posts to planned consumption in case you reference a reservation, or to unplanned consumption in all other cases.
    you always consume from stock  and you enter manually account and cost center, so there is no need to for a consumption by account assignment. (which you dont have in case of 201, as you dont do a 201 in reference to a purchase order)
    you did nowhere explain the movements that you had for the materials that did not show up in the ABC analysis.
    you did not explain what selection you made, by default it looks just at the last 90 days. Are  you certain that you had consumption postings in MB51 in that period?

  • ABC Analysis-Reports

    Hi gurus,
    In some reports output i found the button ABC analysis button.
    What are the featurs of this button, can anybody explain it.
    Cheers,
    Sumith

    Hi Sumith,
    ABC analysis is used to classify characteristic values in order of importance for particular key figures.
    Examples: ABC Analysis
    An ABC analysis divides items into three categories:
    A: Important
    B: Less important
    C: Relatively unimportant
    Following are some of the examples of ABC analysis being used for different reports.
    Purchasing Information System:
    You can use the ABC analysis to classify vendors in terms of the key figure invoiced amount.
    Sales Information System:
    You can use the ABC analysis to classify sales organizations with regard to the key figure incoming order or material or the key figure invoiced sales.
    Inventory Controlling:
    You can use the ABC analysis to classify materials according to the key figure usage value.
    Shop Floor Information System:
    You can use the ABC analysis to classify work centers in terms of the key figure scrap quantityu2019.
    Plant Maintenance Information System:
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    Quality Management Information System:
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  • ABC Analysis (revisited again!!!)

    Hello Friends,
    I saw few posts on how to do ABC analysis, but there were no concrete answers.
    To summarize the requiement (say based on Good Receipt Quantities):
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    2. Bottom 25 -> indicate as 'C'
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    SAP How to paper(How to.. Realize an ABC Analysis) is on counts and not on cummulative %.
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    The last option would be VB macro, but then this would be not be a fantastic solution, as SAP Query can do ABC analysis, but BW Query would not be able to!!!
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    Hi,
    For example :
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    The ABC analysis ranks the records from the bigger value to the lower value of the Classification Criterion.
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    ==> It will give you a classification that answers    to "who are the 20% of my clients that gave me the best revenues?".
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    ==> It will give you a classification that answers to "who are the clients that gave me 20% of my revenues?".
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  • ABC analysis and MC40

    hi-
    Environment : ECC6.0
    We use the standard MIBC-ABC analysis which changes the ABCD indicators based on the turnover or u can say consumption.
    Scenario:
    We have low cost value components (say Bolts) but have a high usage/consumption. So based on ABC indicators, they come up for counting very ofter. We dont want  to count them every month due to their low value but would like to make them available in standard SAP ABC analysis.
    And NO, we dont want to fix the CC indicators for these bolts.
    My question as per following?
    (1) How can i achieve a situation that when the ABC analysis runs and provides a report that Bolts are A ( high consumption indicator-monthly), i am able to change the CC indicators subsequently for the Bolts to D ( once a year) so that i dont do the inventory count for them. ( I dont want to use MM17)
    (2) Can i run MIBC analysis and then execute MC 40 for bolts (if this T-code will assist me since i dont know much about this T-code)?
    (3) Can i just run MC40 or is there another T-code which will assist me?
    (4) Is there a process in Standard SAP which will be enble me to achieve my requriement.
    Looking for any information you all can share.
    Thanks

    Thanks for the response.
    MICN is the only one that can update the indicator used for cycle counting.
    Once MICN updates the Cycle count indicators, can i then go into MC40 or similar T-code, select the range of materials or material types for the BOLTS in the input screen and make a change on the CC indicators manually to D ( annual count)?
    However, pretty often the cycle count indicators are precalculated by MICN based on consumption, but then individual items are changed to get a different indicator for specific reasons.
    You may have a low value item, which is very important for your processes.
    Based on consumption values it may get indicator C, but if you have differences on that item then it is a critical factor for your business, hence you want count it more often, thus you would manually change it to B or even A. (which can be done directly from the MICN report)
    My requirement is : I have low value materials in high qty which show in Monthly inventory count due to high consumption. This is my target group to change the CC indicatos to C or D.
    When you indicate i can manually change in MICN report, does it mean that i need to run MICN report twice, first to get the actual ABC analysis and then second time, select the materials (BOLT), generate a report and change the CC indicators.
    I do see an option to input materials in the input screen of MICN but i dont see the option to input or provide the required CC indicators as a manual input.
    If you could provide more information on the sequence of steps, it is appreciated.
    Appreciate your support.

  • MC40 calculation of ABC analysis / part

    Experts,
    can you explain the logic behind a Usage.Based ABC Analysis MC40 . In case I choose Usage value (in %).
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    B= 20
    C= 10
    Thanks in advance
    Jörg

    Hi Jorg,
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    Mario

  • What does the field Inconsistent mean for ABC Analysis for Cycle Counting report

    What does column "Inconsistent" mean for report ABC Analysis for Cycle Counting (T-code MIBC)?  The reason I'm asking is because I see TotalStock values greater than 0, but the Accounting 1 view for Material Master and MMBE both show zero stock.  I do not understand why TotalStock in the report does not show zero.  Can anyone explain how this can happen?
    Note: the report is run for consumption/usage date range.
    Thank you,
    Doug

    Hi,
       MBEW table and MMBE transaction will show the current stock. When you run MIBC report for consumption, the system considers the consumption for the date range given (from MVER table), which may not be equal to the current stock. Refer the KBA:  1817237 - Stock quantities and stock values in MIBC  which explains the system design.
    Regards,
    AKPT

  • ABC analysis

    Hi,
    for the client we have customized the ABC analysis report which shoes the material details and its status for the last 5 years,with last purchase and sales date.
    Some materials are not been caught in this report. What may be the reason for this?.
    Regards

    the ABC indicator in material master should be the result of the analysis, but not a precondition.
    MC40 is a usage based analysis.
    do you have consumpion movements in MB51 for that material?
    Is it a material like any others that show up in your report? or is it something special like non-valuated, or consignment or PIPElline, or always procured to a project...?
    What tables are  the basis for your report?

  • ABC analysis & LIFO / FIFO evaluation

    Hi friends
    I am working in an implementation project
    1. My client requirs to carry out ABC analysis.
    Does it need any configuration ...... Please tell me how to carry out ABC analysis.I also want to show them on SAND BOX & Development server ... What i will have to do ...?
    2.Does any body knows about LIFO / FIFO analysis ?I also have to show them in SAND BOX as wel in development server..

    hi
    Go to se16 and enter the table MARC
    and pull the material based on the field MAABC for A,B or C
    or you can do by
    The A B C status is assigned in the materials master...
    From the following reports the analysis can be done..
    MC40
    MC41
    For LIFO / FIFO analysis check link
    http://help.sap.com/saphelp_47x200/helpdata/en/47/61071349f011d1894c0000e829fbbd/frameset.htm
    For doing any testing in Sandbox or Development Server you need to amintain masterdata there
    Regards

  • Can somebody explain how ABC analysis is done ?

    Hi Experts,
                         Can somebody explain how ABC analysis is done . If I use MC40 transaction there I have 4option but I can use either one of those . For second option , Usage value as number we can directly specify cost and accordingly system will classify materials In A, B and C category .
    I have question on 1st 3 rd and 4 th option . How system will classify materials if These option is used .
    Please explain with examples .
    Points will be rewarded .
    Thanks in advance !
    Neal

    Hi Sir ,
                     Thanks again , I would explain what I have understood .
    MC 40 . Option selected is Usage value with value put are 70 , 20 , and 10 .
    Suppose I have 3 mat in plant
                  Stock         Value
    1) X        100 kg      1000   ( for 1 kg from MM)
    2) Y          20 PC      2300 
    3) Z          30  lt      40000
    Now how would system classify these items ? Will it consider price or only consumption /qty ? or both ?
    Please explain with the same figures . Again the 90 days period you said , is it taken automatically ? because on this T code there is no option for entering time period .
    Neal

  • ABC Analysis - Report Requirement

    Hello Experts,
    There is a requirement for report on ABC analysis like this:
    I)ABC analysis on STOCK VALUE:
    1)Report should provide the total stock value
    2)Stock values of individual A class, B class & C class items
    3)Number of items of  A class, B class & C class materials individually
    Also we need the above information, based on CONSUMPTION VALUE also...
    Is there any way in standard, we can  get these information in some form or the other OR even by using multiple standard reports.
    Regards
    Mahesh

    Try MC40

  • Vendor: ABC Analysis

    Hi,
    How can I perform the ABC Analysis on Vendors to check the spends. The Vendor Master does have indicator in Purchasing view.
    The Standard TCode MC40 / MC46 does not help.
    Thanks

    Hi ,
    Thanks for the reply.
    My exact requirement is to understand the use of the ABC indicator in the purch.view of the vendor master.There is no scroll down list.I know this has to be entered  manually.Can this be configured?How does the entered value gets validated.
    Thanks

  • Adjustment / ABC analysis

    Hi Gurus
    Can you anyone gimme a details of ABC analysis?? Is there any chance to change in the class automatically?(Ex A to B), In regualr scenarious how the industries are using and handling???
    Please gimme some ideas
    SP

    hi SP,
    ABC analysis is done to classify characteristic values in order of importance for particular key figures.This divides the material into
    >highly important
    >low important &
    >less important
    ABC analysis can be used in various ways like
    > MM- classify materials according to the key figure usage value.
    >PP-classify work centers in terms of the key figure scrap quantityu2019.
    >PUR- classify vendors in terms of the key figure invoiced amount
    There are following strategies used for performing the ABC Analysis
    >Total key figure in %
    here u define the cut offs in terms of values of char i.e >
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                                              >20% in class B
                                              >10% in class C
    so the 1st characteristic values which make up 70% are in A
    next char values which make upto 90% (20%) are in B
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    >Number of characteristic values in %
    here u define the cut off in terms of number of char i.e>
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                                                 >30% in class B
                                                 >60% in class C
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    here u fix the limit straight away like
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    char values <10lac but >5 lac come in class B
    char values <5lac come in class C
    >Number of characteristic values
    here u deifine the number of char that u want to put in class A,B&C.
    like 1st 25 in A,next 40 in B & rest in C.
    so while creating the ABC analysis u'll get these 4 strategies from where u can choose based on the requirement.
    hope this is clear
    regards,

  • Inventory ageing of the materials

    hi all,
    Need an report which gives the Ageing for the Inventory standing ason a particular period with the bifurcation between Finsihed go ods, Raw materials, Working in Progress with respect to movement of materials. And also need to check for the consumption and cov rage of the materials for ABC analysis.
    with regards
    VBakyaraj

    Hi
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    MC50 - dead stock analysis
    MC46- slow moving items
    MB5L - List of stock values
    MC.9 - Material analysis
    Regards,
    Raman

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