BOM Cost Report - Extended Costs

ADAM: The system basically "amortizes" the setup labor costs across the lot size for standard cost. There really isn't any other way to calculate standard cost other than setting a baseline for "normal" operations. If you deviate from "normal", it shows up in variance and is easily explainable (by your custom reports because Vantage doesn't give you any variance reports whatsoever). Manage by exception is what standard cost is all about.

BEVERLY: The costing lot size doesn't not directly affect the variance. Mfg variance is simply the costs left over in WIP after the job is complete. We don't use MRP, so I'm not sure how it factors in to the calculation. I wouldn't think it would affect much as long as you don't have extended setups required.

As a side note, unless you have huge swings in your job costs or don't have resources to manage costs, I don't see any reason to use average costing for manufactured parts. I think there is a big misconception that somehow average costing is more accurate than standard. Average costing is certainly easier but I think it can hide your variance. With standard costing, the variance is right there in your face. Neither is inherently more accurate though. I was recently at an Epicor Road Show where someone asked if Epicor did "actual costing". I about fell out of my chair laughing.


--- In vantage@yahoogroups.com, "adam.whipp" <adam.whipp@...> wrote:
>
>...Every job is not going to be the same exact qty, so I think this is just a stupid way to treat this on Epicor's part.....They really couldn't answer me when I asked what all is affected by this field.
>
...
>
> Adam Whipp
>
> --- In vantage@yahoogroups.com, "beverlykerby" <bscanlan@> wrote:
> >
> > We do not have anything in that field, although after putting in a quantity and rerunning the report I can see what a difference that makes. I do have a few more questions regarding this particular field:
> > We are using average costing so if we put in quantities in this field, how does the system calculate a variance and what does it show in the posting entries?
> > What happens if you have jobs that are for more or less than this costing lot size? We are now using MRP (only about 1 month in) so will this quantity affect any of the job suggestions MRP creates?
> >
Good morning,

We have come across an issue when we print off the BOM cost report, either single level or indented level, where the extended labor and burden costs are including a setup cost for each piece e.g. there is a quantity of 52 for an manufactured part in one of our BOMs and when I go through the calculations I have determined that the extended labour and burden costs have included 52 setups, rather than one setup for all 52 of that part.

Has anyone else seen this issue or perhaps know if there are settings I could look at that we may have put in incorrectly?

Any help would be appreciated.

Thanks,

Beverly Scanlan
Metalumen Manufacturing
What do you have for costing lot size on the plant tab in part master?


--- In vantage@yahoogroups.com, "beverlykerby" <bscanlan@...> wrote:
>
> Good morning,
>
> We have come across an issue when we print off the BOM cost report, either single level or indented level, where the extended labor and burden costs are including a setup cost for each piece e.g. there is a quantity of 52 for an manufactured part in one of our BOMs and when I go through the calculations I have determined that the extended labour and burden costs have included 52 setups, rather than one setup for all 52 of that part.
>
> Has anyone else seen this issue or perhaps know if there are settings I could look at that we may have put in incorrectly?
>
> Any help would be appreciated.
>
> Thanks,
>
> Beverly Scanlan
> Metalumen Manufacturing
>
We do not have anything in that field, although after putting in a quantity and rerunning the report I can see what a difference that makes. I do have a few more questions regarding this particular field:
We are using average costing so if we put in quantities in this field, how does the system calculate a variance and what does it show in the posting entries?
What happens if you have jobs that are for more or less than this costing lot size? We are now using MRP (only about 1 month in) so will this quantity affect any of the job suggestions MRP creates?

--- In vantage@yahoogroups.com, "saab_barracuda" <chris.clunn@...> wrote:
>
> What do you have for costing lot size on the plant tab in part master?
>
>
> --- In vantage@yahoogroups.com, "beverlykerby" <bscanlan@> wrote:
> >
> > Good morning,
> >
> > We have come across an issue when we print off the BOM cost report, either single level or indented level, where the extended labor and burden costs are including a setup cost for each piece e.g. there is a quantity of 52 for an manufactured part in one of our BOMs and when I go through the calculations I have determined that the extended labour and burden costs have included 52 setups, rather than one setup for all 52 of that part.
> >
> > Has anyone else seen this issue or perhaps know if there are settings I could look at that we may have put in incorrectly?
> >
> > Any help would be appreciated.
> >
> > Thanks,
> >
> > Beverly Scanlan
> > Metalumen Manufacturing
> >
>
I came across this same issue and called Epicor support. They told me to change the costing lot size to always be as close as possible to our average job size. I however don't like that. Every job is not going to be the same exact qty, so I think this is just a stupid way to treat this on Epicor's part.....They really couldn't answer me when I asked what all is affected by this field.

We still have many that are blank, and the only things I see that are affected are BOM Cost report and the Cost Rollup. We do not use cost rollup, so we haven't worried about it too much.

Adam Whipp

--- In vantage@yahoogroups.com, "beverlykerby" <bscanlan@...> wrote:
>
> We do not have anything in that field, although after putting in a quantity and rerunning the report I can see what a difference that makes. I do have a few more questions regarding this particular field:
> We are using average costing so if we put in quantities in this field, how does the system calculate a variance and what does it show in the posting entries?
> What happens if you have jobs that are for more or less than this costing lot size? We are now using MRP (only about 1 month in) so will this quantity affect any of the job suggestions MRP creates?
>
> --- In vantage@yahoogroups.com, "saab_barracuda" <chris.clunn@> wrote:
> >
> > What do you have for costing lot size on the plant tab in part master?
> >
> >
> > --- In vantage@yahoogroups.com, "beverlykerby" <bscanlan@> wrote:
> > >
> > > Good morning,
> > >
> > > We have come across an issue when we print off the BOM cost report, either single level or indented level, where the extended labor and burden costs are including a setup cost for each piece e.g. there is a quantity of 52 for an manufactured part in one of our BOMs and when I go through the calculations I have determined that the extended labour and burden costs have included 52 setups, rather than one setup for all 52 of that part.
> > >
> > > Has anyone else seen this issue or perhaps know if there are settings I could look at that we may have put in incorrectly?
> > >
> > > Any help would be appreciated.
> > >
> > > Thanks,
> > >
> > > Beverly Scanlan
> > > Metalumen Manufacturing
> > >
> >
>