ABC Classification
The ABC Classification is a frequently used analytical method to classify objects (Customers, Products or Employees) based on a particular measure (Revenue or Profit). For example, you can classify your customers into three classes A, B and C according to the sales revenue they generate.
ABC classification allows you to classify your data based on specified classification rules. The data to be classified is generated by a query in the SAP NetWeaver BW. The classification rules refer to a single key figure value in your data and implicitly specify which absolute or relative key figure values map to which classes.
The data to be classified using ABC classification can be taken from any system, if that system can extract data into SAP NetWeaver BW. You can apply the same ABC classification to any data that has been extracted into SAP NetWeaver BW.
You require a query in SAP NetWeaver BW delivering 'suitable' objects that can be classified by ABC classification. In particular, the query must contain the key figure to which the classification rules can be applied.
Only numerical key figure fields can be used for the classification type Cumulated Percentage of Classification Criterion, as summation of non-numerical fields is not possible.
You specify the following for the ABC classification model:
- The characteristic for which the classification is to be performed. This entails specifying the characteristic values to be classified (such as Customer).
- The key figure that is to form the basis for classifying the characteristic values (such as Profit made from that Customer)
- The attribute of the characteristic that should receive the result (the ABC class)
- The query for determining the data (such as Profitability Data from Customer)
- The threshold values for the individual ABC classes. For example, all customers generating a profit of 0 to 20,000 belong to class C, those generating a profit between 20,001 and 80,000 to class B, and those generating more than 80,001 to class A.