Cycle counting with ABC code

Hello everyone,

We are using AX 2009 and I am trying to see if I can use the AX out of the box ABC Classification functionality to categorize the items for the purpose of selecting the items for counting based upon the criteria - item usage, item cost, and item’s lead time for procurement or to make in house.

However, looking at the ABC Classification functioality in Item form > Other Tab > ABC field group, AX offers ABC code by Value, ABC code by Margin, ABC Code by Revenue and ABC code by carrying cost.

How should I approach fitting this gap? Has anyone implemented the ABC code in AX?

I would greatly appreciate any suggestions.


Essentially ABC is considered value based because it is a focus on worth to the company. If we take your item usage what is the basis for this - simply volume of components used in a period? So nuts and bolts are your most critical A type items?

Item cost you can do - memory says this is the value categorisation, based upon usage, so if you never use something and it costs $1000000 it is still not an A because you never use it.

Lead time is an interesting one - how do you categorise an item as A, B or C based upon standard lead time, TA lead time compared to internal route time - what makes it an A?

Have you looked at specifying counting groups and attributing items to counting groups by your own definition - the downside is that AX will move the ABC classification based upon history, yours would not. Otherwise you are looking at modifying it to meet your exact needs.

Hello Adam,

Thanks for your suggestion. Is there any documentation that I can refer to find a bit more on Counting Groups and how it is implemented? Or, if you can elaborate me based on your memory…

What I am looking to see system do here is - based on item category ABC, I want to schedule certain percentage of item to be counted on a regular basis. For example- for A item monthly, B item quarterly and C item Yearly etc. And, for the monthly counting schedule of A item, can there be a way to auto generate counting journal and so forth?

However, using the counting group, can this be achieved? I know I may be asking many questions out of my ignorance, but please let me know if I am not clear.

Again, thanks in advance!

Against each item on the general tab there is a counting group, or in the warehouse section you can assign a different counting group per warehouse.

The counting group can be set to be a counting code of “Period” and then you can define it as 30, 90 or 360 days for each monthly, quarterly or annual split.

When the counting journal is then created it can be created by counting group - if the filter means the item has already been counted it will not show.

However this is completely divorced from the ABC classification. So you have a counting group of monthly, and you have an A item, if the item becomes a B over time the counting group would still remain as monthly. If you wanted to alter this it would be a modification. It may however be that you can classify your items by counting group to handle this.

Thank you so much Adam. You have explained my confusions of the relationship between ABC code and Counting Group.

You have been great help.