Handling Design & Build Jobs

you sound like you're on the right track . the basic questions we ask ourselves is who is going to pay the Bill? i.e. customer owned, or are you ammortizing the cost over the life of the product or even the life of the associated equipment. easiest of course is when your customer pays for it. translated to a line on a sales order. trickier when its product specific and you're forced to ammortize over the expected life cycle. here we treat that the same as an 'asset' the only difference being that in the case of tooling that is product specific and not customer owned we bury that cost in the quoted part. 'assets' whether or not they are expensed or capitalized are usually reciepted into stock at zero dollars and if they are expensed are routed to the appropriate expense account through the job (they truly are a cost of sales) or if they are capitalized, we chuck them to a variance account and deal with them as a journal entry. the only murky part may be if you have the asset module, that may enter more options? the biggest deal is capturing your costs, which you are doing . cudos! the rest i think is where do you want them to appear on your balance sheet..


Sent from my Verizon Wireless 4G LTE Smartphone

gidgeboy <shane.parker@...> wrote:


Hi Folks;

What is the reccomended way to handle internal design and build jobs?

The issue we are facing arises when we are required to design and build equipment for our own internal use.

For example we recently acquired a new welding machine. In order to make it more efficient to use we designed and built what is essentially a jig that will be used for a number and variety of tasks.

We are thinking that we want to build the part (the jig) to stock, so that it shows up as an asset.

When we decide we would like another jig we would then just build the same jig to stock � so far so good.

The issue we are having is that we are not sure how we should handle the initial (design) part of this job.

To date (for client design and build jobs) we have been making a line with a virtual part (i.e. a part that is not in the part master) in the order (called something like "DESIGN & DETAILING OF JIG") and creating a job with operations like "DESIGN" from there. This allows us to track expenses against the job � which is great. After the design and detailing job is complete we know what parts and assemblies we need to build, so we can input them into epicor as parts and go from there (obviously we can't do this before we finish the design!).

Is this a sensible way of dealing with design & detailing type orders, or is there a better way that we should learn about?

What is the recommended practice for dealing with this type of situation when the client is ourselves? If we do it the same way won't we will end up invoicing ourselves? This seems odd, and so we are thinking that there must be a better way.

Thanks;
Shane.





[Non-text portions of this message have been removed]
Hi Folks;

What is the reccomended way to handle internal design and build jobs?

The issue we are facing arises when we are required to design and build equipment for our own internal use.

For example we recently acquired a new welding machine. In order to make it more efficient to use we designed and built what is essentially a jig that will be used for a number and variety of tasks.

We are thinking that we want to build the part (the jig) to stock, so that it shows up as an asset.

When we decide we would like another jig we would then just build the same jig to stock – so far so good.

The issue we are having is that we are not sure how we should handle the initial (design) part of this job.

To date (for client design and build jobs) we have been making a line with a virtual part (i.e. a part that is not in the part master) in the order (called something like "DESIGN & DETAILING OF JIG") and creating a job with operations like "DESIGN" from there. This allows us to track expenses against the job – which is great. After the design and detailing job is complete we know what parts and assemblies we need to build, so we can input them into epicor as parts and go from there (obviously we can't do this before we finish the design!).

Is this a sensible way of dealing with design & detailing type orders, or is there a better way that we should learn about?

What is the recommended practice for dealing with this type of situation when the client is ourselves? If we do it the same way won't we will end up invoicing ourselves? This seems odd, and so we are thinking that there must be a better way.

Thanks;
Shane.