> ## Documentation Index
> Fetch the complete documentation index at: https://docs.arcuserp.com/llms.txt
> Use this file to discover all available pages before exploring further.
# ABC Analysis
> Classify products into A, B, and C tiers by the value of stock they consume, so you can focus counting and purchasing on the products that matter most.
Use **Operations > Inventory > ABC Analysis** to rank products by consumption value, the cost of stock that left inventory through shipments and other stock reductions. The few products that make up most of that value are tier A; the long tail is tier C. Use the tiers to decide how often to cycle count and which products deserve the closest purchasing attention. The report is read-only.
## Before You Start
* **Permission**: you need the **reports view** permission to open the screen and run the report.
* **Location filter**: the **Location** list appears only when your company has more than one location, and it needs settings view access to load. Without that access the report still runs for all locations.
* **History**: the report needs stock that has left inventory at cost. A new company with no shipments yet shows no tiers.
Other ways in: search for **ABC Analysis** in the command palette.
## Run the Report
1. Open **Operations > Inventory > ABC Analysis**. The report runs with the default thresholds as soon as the page opens.
2. Set **Threshold A (% cumulative value)**, from 10 to 90. The default is 80.
3. Set **Threshold B (% cumulative value)**, from 11 to 99. The default is 95. It must be higher than threshold A.
4. Optionally enter **Lookback (days, blank = all time)**, up to 1,095 days. Leave it blank to use all history.
5. If you have more than one location, choose one in **Location**, or leave **All locations**.
6. Select **Run Report**. The button reads **Running...** while the report loads.
7. Select **Reset Defaults** to go back to 80 and 95, all time, and all locations, and run again.
## How the Tiers Are Set
Arcus sorts products by consumption value, highest first, and adds up their share of the total as it goes down the list:
* **Tier A**: products up to threshold A of cumulative value. With the default, the products behind the top 80 percent.
* **Tier B**: products between threshold A and threshold B. With the defaults, the next 15 percent.
* **Tier C**: the rest of the value.
## Read the Results
**Tier cards:** one card each for **Tier A**, **Tier B** and **Tier C**, with the tier's consumption value, SKU count, share of consumption, and a suggested counting cadence (**Monthly cycle count**, **Quarterly cycle count**, **Annual cycle count**).
**Summary cards:**
* **Total consumption value**: the value consumed in the window, labelled **Last (days) days** or **All time**.
* **Products classified**: how many products received a tier, with the thresholds used.
* **Products with no movement**: products you hold that never had stock leave inventory. They are candidates for tier C and for the Dead Stock review.
**Table columns:** **Tier**, **Product / SKU**, **Consumed qty**, **Consumed value**, **Cumulative %**, **On hand qty**, **On hand value**, and **Last movement**.
## Messages You May See
| Message | What it means | What to do |
| ---------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------- | --------------------------------------------------- |
| **No consumption data** with "No FIFO consumption recorded in the last (days) days. Try a longer lookback window or use all time." | Nothing left inventory inside the lookback window. | Clear the lookback or enter more days. |
| **No consumption data** with "No FIFO consumption recorded. Receive and fulfill some inventory to see ABC classification." | No stock has ever left inventory at cost. | Run the report again after orders ship. |
| "Threshold A must be less than threshold B" | Threshold A is equal to or above threshold B. **Run Report** is disabled. | Lower A or raise B. |
| "Threshold A: 10-90, Threshold B: 11-99" | A threshold is outside its range. **Run Report** is disabled. | Enter values inside the ranges. |
| "Could not load ABC analysis." | The report could not run. The server's reason follows the message. | Run it again; if it repeats, check your permission. |
## Use the Tiers
* **Cycle counting**: count tier A most often. To have Arcus create counts on a schedule by class, turn on **Auto-schedule cycle counts by ABC class** at **Settings > Shipping & Fulfillment > Warehouse**.
* **Purchasing**: review reorder settings for tier A products first; a stockout there costs the most.
* **Slow movers**: compare tier C and **Products with no movement** with the Dead Stock report.
## What This Report Does Not Change
Running the report is read-only. It posts nothing to the ledger, moves no stock, and does not change any product's settings or schedule counts by itself.
## Related Articles
Operations > Warehouse > Cycle Counts: count tier A products more often.
Operations > Inventory > Dead Stock: on-hand products with no recent movement.
Operations > Inventory > Valuation: the value of all stock you hold.
Operations > Inventory > Supply & Demand: replenishment pressure for stocked products.