Question

Fixing Part Average Cost

  • 26 October 2021
  • 4 replies
  • 909 views
T
Userlevel 3

I may be crazy but I am trying to remember if there is a conversion or fix routine to recalculate the average cost for parts.  Many parts have zero average cost due to not being received to stock but rather direct to the job.  Now everything is being received to stock and the costs are messed up.  Is there a way to have the system roll through past receipts and automatically recalculate the average cost?  This is for Kinetic 2021.2.3 in the Cloud so I am thinking if there really is a way it would require Cloud Support.  The incorrect (or missing) average costs are affecting WIP valuation and revenue recognition.

 

Thanks,
-Todd C.

Todd Caughey Epicor Contract Consultant, Randstad USA, Plymouth, MN

4 replies

mwilson
Userlevel 4

Dear Todd, 

When parts are received to a job material record, the calculations on the average cost of those in stock is not supposed to be touched.  This is because the material being received, isn’t going into stock so the average cost after the receipt should be exactly as it was before.  I suspect that if you look at example transactions, you’ll see that the parts you have in stock were either DMT-loaded with zero average cost already in place, or they were inventory-adjusted in.

I’m not aware of a conversion workbench to fix this; of course if you have a list of parts and what the costs should be, you can DMT-load a batch of cost adjustments.

 

HTH

..Monty.

..Monty. Monty Wilson, Vice-President North America, Epicor Users Group
T
Userlevel 3

Thanks Monty.  Yes, material received to the job does not affect the avg cost.  Many part have never been received to stock so show zero for the avg cost.   They are transitioning away from receiving to the job but the warehouse/bins are not well defined, yet.  They are working on a spreadsheet to hand me to do the DMT but there are 13,000 parts.  Fortunately many are the same cost with only color differences  to make them unique parts.  We will bite off chunks or a couple throusand parts to DMT.  I could have sworn there was a tool to square-up the average costs.  Oh well.

-Todd

 

Todd Caughey Epicor Contract Consultant, Randstad USA, Plymouth, MN
mwilson
Userlevel 4

Dear Todd, 

 

If you have quantity on hand, that was transacted-in (received from manufacturing jobs or received against POs) then the average costs would have been updated at that point.  The fact that you have quantities on hand with zero cost, is an indication that the quantities were inventory-adjusted in, without first doing a cost adjustment.  I would advise looking at a few cases where you have stock on hand but zero average cost, and looking at the part transactions on those items.  I don’t want to say Epicor doesn’t have a fix tool, but if they did it would need to be based on information already available in the database.

 

Hoping you find the best way

..Monty.

..Monty. Monty Wilson, Vice-President North America, Epicor Users Group
T
Userlevel 3

What I have been told is back when they were purchasing directly to the job, and received it that way, bypassing putting it into Stock, then it did not update the average cost for the part.  So this left a lot of parts with no cost because they had never been put into stock.  It is an unusual manufacturing environment and too many people not familiar with Epicor - they are always seeking ways to “work around the system” and then get themselves backed into a corner.  I’m trying to help where I can.  Fortunately they have one very knowledgeable employee with prior Epicor experience so between the two of us we will get them where they need to be.   But first the costs need to be cleaned up so once they are determined I (or the Power User) can DMT them in.

Todd Caughey Epicor Contract Consultant, Randstad USA, Plymouth, MN

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