Hi, Readers.
Dynamics 365 Business Central 2026 wave 1 (BC28) is generally available. More details: General Available: Dynamics 365 Business Central 2026 release wave 1 (BC28)
I will continue to test and share some new features that I hope will be helpful. In this post, I would like to talk about Item – ABC Analysis (Standard report)
The Item – ABC Analysis report ranks your inventory items into A, B, and C categories based on their sales amounts in local currency (LCY). Use the report to decide which items to always keep in stock and where you can afford occasional stock-outs. That way, you divert your supply chain resources to the items that matter the most.
Rank inventory items into A, B, and C categories based on their sales amounts (LCY) to identify high-value items and support purchasing and replenishment decisions.
Inventory managers use the report to:
- Identify the items that contribute the most to revenue and prioritize their availability.
- Review which items fall into each category and adjust purchasing strategies accordingly.
- Spot items with zero sales that might be candidates for phase-out or promotion.
Purchasing agents use the report to:
- Focus negotiations and supplier relationships on high-value Category A items.
- Adjust reorder quantities and safety stock levels based on item classification.
- Identify Category C items where you can reduce inventory investment.
Controllers use the report to:
- Analyze the distribution of inventory value across categories.
- Support decisions about inventory write-downs or obsolescence provisions for low-value items.
- Validate that inventory investment aligns with sales performance.
The report calculates each item’s share of total sales and classifies items by the percentage thresholds you define:
- Category A items have small volume and high value. These items drive the most revenue and should always be in stock.
- Category B items have medium volume and medium value.
- Category C items have high volume and small value. You might accept occasional stock-outs for these items.
Default category thresholds come from the ABC Analysis Setup page.
The values must total 100%. You can override the thresholds on the request page each time you run the report.
The following table describes the fields on the Item – ABC Analysis request page.
| Option | Description |
|---|---|
| Ratio Cat. A/B/C | Set the percentage thresholds for each category. The three values must total 100%. For example, A = 50, B = 30, C = 20 means that items contributing to the top 50% of total sales value are Category A. |
| Show Category A/B/C | Choose which categories to include in the report output. |
| Print Lines with 0 | Include items with zero sales amounts. These lines are often excluded from the analysis. |
On the Item FastTab, you can apply filters to control the data that the report includes.
The report includes an Excel layout with worksheets designed for print and for analysis.
The Excel layout includes three worksheets:
Print: A printable version of the report with item details and ABC classifications.
Structure: A summary of cumulative values for each ABC class.
Analysis: A worksheet with slicers for ABC class and inventory posting group, so you can slice and dice the data further.
The same thresholds are also used by the ABC Analysis (Power BI Report), so the classification is consistent across both reports.
Once you have completed the Power BI Reports setup, you can open it.
Great. Give it a try!!!😁
PS:
1. Item – ABC Analysis (report)
2. ABC Analysis (Power BI Report)
END
Hope this will help.
Thanks for reading.
ZHU
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