All items in the inventory can be periodically or manually categorized based on: revenue, margin, value & carrying cost.
- A Items are most expensive which requires regular cycle count and monitoring like 30% of total inventory
- B are medium level
- C are low level where tracking may not be required
Note: Classification is only for reporting and filtering purpose only
There are 2 main reports commonly used
- Physical Inventory: Using inventory dimension which provides on hand stock bases on as on date provided. Reports->Physical Inventory
- Inventory Aging: Shows how old the inventory across various days buckets: 30, 60,90 & 120.