ABC class codes are used for ABC analysis and volume value classification of inventory parts. ABC analysis means that the sales volume of each part is calculated and that all parts are sorted in descending volume order. The parts are then assigned an ABC code letter by accumulating sales volume until the decided percentage of the total sales volume is reached, e.g., ABC class code A is assigned to all parts that counts for the first 80% of total sales.
When the system is installed, classes A, B, and C are automatically created. These classes cannot be deleted. You can assign your own percentage on each class. However, the cumulative value must total 100% for the three classes.