Cost Adjustment - BPM advice

Epicor ERP 10
1

I’ve been asked to create a BPM that will complete a cost adjustment on receipt for purchased parts/services so that the standard will be updated and thereby reduction PPV. Additionally then the idea being that inventory would be valued at the last purchased price and that will make auditors happy. At least that’s what they tell me. I’m not an accounting person.

I’ve searched the forum a little for any conversations surrounding this idea and am not finding a lot. Is anyone else doing this? Are there issues to be aware of going down this road? Instinct tells me there are likely some pitfalls, however I’m not clear on what they would be.

Thanks in advance for any thoughts/ideas/advice

2

I could see doing something like this to set the initial standard cost if it was left at $0.

however, constantly updating standard cost upon receipt defeats the inherent purpose of having a standard.

Alternatively why not just use the “Last Cost” costing method on your parts instead of standard? It will function the exact way they asking for from the customization.

*Note that you will need to adjust out any on hand quantities before changing a parts costing method and a adjust them back in afterwards.