ABC Sale Analysis, Stock Norm & Production Plan
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How to Configure & Generate the ABC Sales Analysis, Stock Norm & Production Plan?
In this tutorial, we will learn how to configure and generate the ABC Sale Analysis, Stock Norm and Production Plan report in Logic ERP.
This report helps businesses plan production based on actual sales performance, available stock, reserved stock, and defined stock coverage policies. It classifies items into ABC categories and suggests the quantity that needs to be produced.
Access to the ABC Sale Analysis Report
Navigate to the Reports/Queries section from the main menu.
Under Customer + Item Sales Analysis, open the ABC Sale Analysis, Stock Norm and Production Plan report.
Before generating the report, let's configure the required planning parameters.
Configure the Sale Period
Open the Configuration window.
Under the Sale Period section:
Define the number of months to be considered for sales analysis.
For this example, we are selecting 3 months, which is approximately 90 days.
Important Point
The sale period should be defined according to the business's planning requirements. The selected period directly affects the sales analysis and production calculation.
Configure Sale Value Definitions
Under Sale Value Definitions, configure the required options.
Net Off Sale Returns
Enable Net Off Sale Returns.
This ensures that returned quantities are deducted from the sales figures.
Exclude Inter-Branch Transfers
Enable Exclude Inter-Branch Transfers.
This prevents stock transferred between branches of the same business from being treated as actual sales.
Objective
These settings ensure that the report is based on actual sales performance rather than returns or internal stock movements.
Configure ABC Classification
Under ABC Classification, open the category-wise configuration.
For example, we can define the classification as follows:
A
Top 10%
10 Days
B
Next 40%
20 Days
C
Remaining 50%
30 Days
Classification Logic
The category boundaries are entered as running totals, so the final category reaches 100%.
For example:
A = 10%
A + B = 50%
A + B + C = 100%
The classification is not restricted to three categories. If required, you can also add additional categories such as D, E, and so on, according to your business planning policy.
Configure Stock Availability
Next, configure the stock-related options.
Enable and select the required HO Branch to display the stock in hand.
Enable Less Reserved Stock.
Enable Less Stock Allocated Against Sales Order.
Why These Options Matter
Stock that is already reserved or allocated against a Sales Order should not be treated as freely available stock for new production planning.
These settings help the report calculate the actual stock available for planning.
Save the Configuration
Once all the required settings have been defined:
Save the configuration changes.
Set the report date range according to the selected Sale Period.
For this example, since we selected a 3-month sales period, the report will also cover the same three-month period.
Generate the Report
Now, Run the Report.
System Behavior
As you can see, the system classifies the products according to the ABC classification criteria defined in the configuration.
The classification is based on the sales performance of the products during the selected period.
Generally:
Category A contains the highest-selling products.
Category B contains the next level of products.
Category C contains products with comparatively lower sales.
Understand the Production Calculation
Let's take an example of a Category A product.
Suppose:
Sales during the last 3 months = 1,200 units
Sales period = 90 days
Average daily sale = 1,200 ÷ 90 ≈ 13 units
Category A stock coverage = 10 days
Required Stock
13 units × 10 days = approximately 130 units
Suppose the available stock is 40 units.
The report will calculate:
Required Stock – Available Stock
130 – 40 = 90 units
Therefore, the report suggests producing approximately 90 units.
What This Means
The report helps identify:
What needs to be produced
How much needs to be produced
Which products require priority
How sales performance affects production planning
Analyze the Report
As you can see, Category A products appear at the top because they have the highest sales contribution.
Category C products may have a higher stock coverage period, but because their sales are generally lower, their production requirement may also be comparatively lower.
This allows the business to prioritize production based on actual demand.
Troubleshooting: If the Figures Do Not Match
If the report figures do not appear as expected, review the configuration settings, particularly:
Sale Period
Net Off Sale Returns
Exclude Inter-Branch Transfers
ABC Classification
Less Reserved Stock
Stock Allocated Against Sales Order
HO Branch / Stock in Hand
These settings directly affect the sales analysis, available stock, stock norms, and suggested production quantity.
Key Benefits
Demand-Based Planning: Production is calculated using actual sales performance.
ABC Classification: Helps prioritize high-performing products.
Accurate Stock Planning: Considers available and committed stock.
Reduced Overstocking: Helps avoid unnecessary production.
Better Production Decisions: Clearly indicates the quantity that needs to be produced.
Final Outcome
The ABC Sale Analysis, Stock Norm and Production Plan report helps businesses convert actual sales data into a practical production plan. By configuring the sales period, ABC categories, stock coverage, and available stock correctly, Logic ERP can suggest which products need to be produced and the approximate quantity required.
User Guide
For a full explanation of every setting, column and common question, see the ABC Sale Analysis, Stock Norm & Production Plan - User Guide.
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