How to Update Part Average Material Cost

What is best way to manually update part cost? Average costing We discovered a costing issue and need to correct.

12/15 Received 1,500 at $0.659 each. (PO 60429)
12/30 Rejected 1,500 at $0.659 each.
1/27 Received 1,500 parts into Inspection at $0.00. (PO 61088)
1/28 Moved 1,500 parts from Inspection into Inventory Stock at $0. (Avg cost per part tracker actually shows $0.00088)

1/13 AP Paid 1,500 at $0.659 each (PO 60429)
1/28 AP Entered invoice for 1,500 at $0 to clear off received not invoiced report.

Cost Adjustment. That’s the name of the screen. You can modify average or last cost there just like you would update a standard cost.

Reason codes tied to GL Controls, etc.

It does re-value your on-hand inventory, fair warning.

So if you are correcting a mistake, this may not get the whole of it, if the OH qty is not the same as when the mistake happened (i.e. you shipped some parts since then and Cost of Sales is wrong now).

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And to prevent this, Epicor recommends (and users don’t like) is whenever you return items, enter a Debit Memo. IF you want the parts returned, add a new line on the PO for the same cost and receive them at that price. This will protect your average cost calculation.

There’s another work-around that I’ve seen and that is to send the parts out on a subcontract PO at zero cost. The cost of the job should be the total of the raw material so the receipt should go back into stock at the same cost. Try it out first if you choose this method.

Mark W.