> For the complete documentation index, see [llms.txt](https://kb.logicerp.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kb.logicerp.com/logic-erp-learning-hub-tutorials-and-best-practices/reports-queries/customer-+-item-sale-analysis/abc-sale-analysis-stock-norm-and-production-plan.md).
# ABC Sale Analysis, Stock Norm & Production Plan
**YouTube:** [How to Configure & Generate the ABC Sales Analysis, Stock Norm & Production Plan?](https://www.youtube.com/watch?v=XjrLfEbHt8A)
## 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 **Sales Period** section:
* Set **Sale Period Months** to the number of months to be considered for sales analysis (1 to 8; a new configuration starts at 3).
* 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. The period counts back from the report's **To** date.
***
### Configure Sale Value Definitions
Under **Sale Value Definition**, configure the required options. Both options below are already ticked in a new configuration.
**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 **ABC Bands**.
For example, we can define the classification as follows:
| Category | Share of Products | Buffer Days |
| -------- | ----------------- | ----------- |
| **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%**. With the default **Classification Method** (Percent Of Item Count) they are shares of the ranked list of products; with **Cumulative Value Share** they are shares of sales value.
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.
* Tick **Select HO Branches** and choose the head office branches whose stock should count. If none are selected, stock from every branch is counted.
* Enable **Less Reserved Stock** to take off stock reserved against sale orders.
* **Less Stock Allocated Against SO** takes off the **same** reserved stock. Tick only one of the two — ticking both deducts it twice.
**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 **To** date. The sales period counts back from it; the **From** date is used only when **Sale Period Basis** is **Report Date Range**.
For this example, since we selected a **3-month sales period**, the report looks at the three months up to the **To** date.
***
### 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 ≈ 13.33 units** (by default the report divides by the actual days in the period)
* Category A buffer days = **10 days**
#### Required Stock
* **13.33 units × 10 days = approximately 133 units**
* Suppose the available stock is **40 units**.
* The report will calculate:
* **Required Stock – Available Stock**
* **133 – 40 = about 93 units**
Therefore, the report suggests producing approximately **93 units** — or 94 with **Round Production To** set to **Whole Number**, because rounding is always up.
#### 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**
* **Less Stock Allocated Against SO** (tick only one of the two reserved options)
* **Select HO Branches**
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](/logic-erp-learning-hub-tutorials-and-best-practices/reports-queries/customer-+-item-sale-analysis/abc-sale-analysis-stock-norm-and-production-plan/abc-sale-analysis-stock-norm-and-production-plan-user-guide.md) and the [ABC Sale Analysis, Stock Norm & Production Plan - Configuration](/logic-erp-learning-hub-tutorials-and-best-practices/reports-queries/customer-+-item-sale-analysis/abc-sale-analysis-stock-norm-and-production-plan/abc-sale-analysis-stock-norm-and-production-plan-configuration.md).
---
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