this is the process for performing a formal inventory count. during this process you will prepare and print count sheets, take a manual count of your inventory, enter the count, post the count to the system, and review a variance report. the overall goal is to reconcile the product totals in the computer with an actual physical count. carrying out ABC analysis is a bit tricky affair. what ultimately is done is to segregate all the inventory items into three categories viz. A, B&C. ABC analysis can be done for any given data that has money value as the prime factor.