Is there a reason to use Movement Classes with ABC Codes when setting up inventory counts? Or do you use one or the other?
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Movement Classes vs ABC Codes
Best answer by Kandy Beatty
Hi
ABC codes are usually used to identify items critical to your business. ABC codes categorize items into groups that necessitate varying levels of management and control. For instance, items classified under A codes, due to their significant impact on the business, should be counted more frequently than items assigned to other codes.
Movement classes are usually used based on the frequency of use. These are items with high turnover rates.
It is going be a business decision based on what your business consist of and if you track items based on business use or the frequency of use. You do not have to use both or either one.
+16Hi
ABC codes are usually used to identify items critical to your business. ABC codes categorize items into groups that necessitate varying levels of management and control. For instance, items classified under A codes, due to their significant impact on the business, should be counted more frequently than items assigned to other codes.
Movement classes are usually used based on the frequency of use. These are items with high turnover rates.
It is going be a business decision based on what your business consist of and if you track items based on business use or the frequency of use. You do not have to use both or either one.
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