Cost Method Update

Kinetic ERP
1

Hi All,

Im trying to update cost method on a bunch of parts we have that were created with STD as cost method and change them to Avg, Im using a DMT but after it finished none of the cost methods are actually updated. I tried going into the part manually as well to change it but after I save it it just reverts back to STD without any error message. These parts have no QOH either. What am I missing?

2

If I recall correctly you can’t change the cost method if you have qty on hand.

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3

You are correct

4

Yes, but these parts dont have QOH

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5

Make sure to turn off new and use Update only in your DMT.

Check out this thread where I struggle through some lot costing changes with DMT.
Switch from Last to Lot Avg Costing? - Kinetic ERP - Epicor User Help Forum (epiusers.help)

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6

Also, I’m not sure if there’s something odd going on cause I think you can change it on part maintenance or part plant if I remember correctly.

So which one are you doing the DMT for?

7

Hi !
Here is what you have to do:

  1. Preparation:
    1.1 Extract the standard costs for the parts you want to change (BAQ);
    1.2. Capture COS&WIP to have no transaction unposted
    1.3. Run inventory WIP Recon - this should show you error (no records selected in system monitor)

  2. Change:
    2.1 make a BAQ on Part to extract quantities on hand for those parts.
    2.2 take out the on hand quantities via QTY adjustment (via DMT);
    2.3. do a part update DMT to change the costing method;
    2.4. do part plant update to change the costing method. If you have multiple Plants (Sites), you might need multiple updates one for each plan (or a big file for all plants);
    2.5. set the average cost to be exact the standard cost you extracted at 1.1 (cost adjustment via DMT)
    2.6. Import back the quantities in their place using the file from 2.2

  3. Final check
    3.1 Run Inventory WIP reconciliation report - if you did everything right you will have the same numbers on some accounts both on debit and on credit.
    3.2. Save the PDF from 3.1 and give it to finance to store it properly for the audit (they will ask for it).

Now IMPORTANT:

  • do not do this without finance approval. In some countries it is illegal to change the costing method in the middle of the month or even during the fiscal year. When you have their “blessing” you can do it;
  • do this in a test system first. make a copy of LIVE to the test system and do it there;
  • all the DMTs need to be done outside business hours (except the one in test environment)

Nice to have:

  • put all your BAQs in a nice dashboard with numbering (1,2,3 so you know which one to run first, second and so on);
  • save all the excel data you import via DMT and give this to finance as well to have the full traceability.

Why this is big deal : if you take out a part worth of 100 USD and put it back at different cost (average) - let’s say 110, you have just created 10 USD out of thin air and Make your company look better. If you put it back at 92 USD you decrease inventory value and from here will go to financial reports i.e. less taxes = Tax authorities will not be happy. So you need to get it right :slight_smile:

Mihai (Mike)

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8

Well written Mike.

9

I tried both Part and Part Plant

10

Thank you Mike, will try this

11

The values in PartPlant are the ones that actually matter. The ones in the Part table don’t do anything other than set default values for NEW PartPlant records. This is an easy trap for users to fall into. That’s also why when you change them on the Part, it usually asks if you also want to update the Part Plant records. That can be the second easy trap depending on your situation. for users of a single site environment, the answer should typically be yes.

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