Question

Part Costing

  • 14 January 2021
  • 3 replies
  • 959 views
G
  • garyb
  • Known Participant
  • 59 replies

I have a costing question, as I am not totally understanding how Epicor does the costing in/with  transactions.

I have a part that on one date/transaction, it shows a STK-CUS transaction with typical unit costs.  The next transactions performed are ones moving parts to Inspection, and then through DMR as we scrapped some parts of the job.  The ASM-INS transactions are recording at no cost, but then the DMR transactions moving them to scrap all of a sudden has our labor and burden unit costs shooting up.  This is a part that typically does not have high costs since it’s a smaller part.

I’m trying to find and/or understand how the DMR process is recording these transactions at a much higher cost.  Is it related to the resource/operation that these parts were scrapped off of?

Attached is a snapshot of these transactions.  I’ve highlighted the line that shows the lower costs, and then the line that these costs are increased.

We just scrapped more of these parts off the same job, only now the mtl unit cost went down, and there was no labor or burden cost.

Any insight to this would be greatly appreciated.

1 Attachment
Gary Browning Tube Forgings of America Inc / The Zidell Companies garyb@tubeforgings.com

3 replies

R

Job labor OP or material based NC’s don’t immediately pull cost out of the job. It’s just the 1st step & data path in the process that might if, ultimately, the NC is inspect failed to DMR and DMR rejected as long as the job isn’t closed & COS/WIP cleared.

 

In fact you can’t (generally) Close a job that has open NC pending inspection or an unresolved DMR but across the years from Vantage 8 through Epicor 9 and now E10, there have been some buggy  releases that allowed the safeguard for premature WIP clearing to be overcome in regard to subcontract OP linked PO’s. (If the link to the job-assy-OP was broken on the PO side, it would break cost flow enforcement.)

 

In the end, the fact that there is that delayed cost movement makes sense particularly for labor NC's that pull material and labor cost incurred up to & including the NC’ed OP in weighted qty WIP value. It allows any labor edits or job adjustments (or for make to order jobs, shipment processing edits prior to invoice) to be taken into account that might (and often do) occur even after receipt (when the job can be in a Completed state). 

 

If your numbers don’t make sense, I’d print the production detail report for the job with all transactions and trace through them to see what occurred. (Maybe track one over time to see when things change.)

A

It might help to have the Inventory Transaction posting technical reference guide it tells you at the transaction what is posted and where it takes the postings and values from. I’ve attached in case it helps.

1 Attachment
G

thank you.  T

Gary Browning Tube Forgings of America Inc / The Zidell Companies garyb@tubeforgings.com

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