---
title: "Run item classification"
slug: "bc-run-item-classification"
description: "Classify items using the Pareto principle in D365 BC. Set periods, classes, and calculate turnover for effective inventory management."
tags: ["Task"]
updated: 2026-06-25T09:59:00Z
published: 2026-06-25T09:59:00Z
canonical: "docs.staedean.com/bc-run-item-classification"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://docs.staedean.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Run item classification

Item classification is based on the Pareto (80/20) principle. This function classifies items based on their contribution to activity (ABC) as well as their turnover (abc). The combination sets the skip pattern: Aa, Ab, Ac, Ba, Bb, D365 BC, Ca, Cb, Cc.

## Steps

To create or update a classification:

1. Choose the ![](https://cdn.document360.io/da662430-6a41-47b1-8c7e-7e4ac37a9756/Images/Documentation/image(149).png) icon (Alt+Q).
2. Type **Classification Worksheet** in the search box.
3. From the **Actions** menu, complete the following steps in this order:
  1. [Set periods and classes](/business-central/docs/bc-run-item-classification#1-set-periods-and-classes)
  2. [Set items to include](/business-central/docs/bc-run-item-classification#2-set-items-to-include)
  3. [Calculate](/business-central/docs/bc-run-item-classification#3-calculate)
  4. [Implement](/business-central/docs/bc-run-item-classification#4-implement)

### Set Periods and Classes

Define parameters for each relevant business area. Set periods as a date formula so the calculation is based on rolling periods.

#### Periods example:

| Area | Start | Length |
| --- | --- | --- |
| Sales | -3Y | 3Y |
| Production | -2Y | 2Y |
| Project | -2Y | 2Y |
| Transfer | -1Y | 1Y |
| Assembly | -2Y | 2Y |

In this example, sales are included for a period of three years starting three years in the past from the work date. Production, projects, and assembly demands for two years, and transfers (Ship) for one year.

For activity as well as turnover, set a percentage for each of the classes.

#### Classes example:

| Type | Class A | Class B | Class C |
| --- | --- | --- | --- |
| Activity | 10 | 20 | 70 |
| Turnover | 10 | 20 | 70 |

In this example, when 10 (%) is specified for Class A, the items sorted from highest to lowest that make up 10% of the total value are assigned class A, the next 20% to B, and the remaining 70% to C.

**ABC Statistics**: once calculated, the calculated values show in this section of the **Classification Setup** page.

### Set Items to include

The classification for the item determines the skip pattern. Use this page to select items for which a classification must be calculated. With the **Update Item Selection** action, update the list using filters. The current item classifications are also shown on this page and are updated by the **Implement** action in the classification worksheet. The **Critical** field designates a quality-critical item for which skips are not allowed.

### Calculate

Calculate the classification with the **Calculate** action, based on the periods and classes specified in the setup. The results show in the worksheet. For activity as well as turnover, three columns are shown:

- **Actual**: retrieved from the **Set Items to include** page.
- **Calculated**: the new calculated value.
- **New**: same as calculated, but editable so you can update it.

### Implement

After reviewing (and optionally correcting) the results, implement the new calculated value with the **Implement** action. This updates the values on the **Set Items to include** page.

## Related

- [Quality Management](/bc-quality-management.md)