Implementation with partially issued job materials

Epicor ERP 10
1

We are implementing Epicor 10 at a facility, and they have jobs with material partially issued to them. How do we reflect that on the job? For example, job 1 requires 100 pieces of part abc. 50 of them have already been issued. I’m struggling to find how we can reflect that. We have DMT, and are loading all information using that tool. Thanks for any insight.

2

You could add those 50 to the initial inventory count of part ABC, and then issue all 100 to the job. This would temporarily over value your inventory, but as soon as you issue the 100 pieces to the job, the inventory QOH and value would be correct. And the cost in the Job’s WIP would be correct for determining the cost of the manufactured parent.

Now Accounting my through a hissy fit, but explain to them that the value of those parts needs to be somewhere on day one. By including them as non-existing QOH, their cost is in Inventory, right up untill the 100 pieces are issued to the job (and only 50 physically come off the shelf).

Now matter what you do to add cost to WIP, it has to come from somehwere. might as well be the inventory account that would have been the source anyway.

3

I was afraid it was going to be that. Not loving that option, tbh. I’ll have to test it. Thanks for the input!

4

What we did was create the jobs (via DMT) and set the qty needed to be Fixed and the quantity that was left to be issued for each material.

I then chose a material sequence that was higher than any job we would ever have and added a part on the fly called WIP_XFER and did job adjustments on those to bring over the WIP cost from the other system.

2 Likes
5

I’d definitely advise against doing a JE to the WIP account. You should never do JE’s to these system maintained accounts (Inventory, WIP, AR Accruals, etc…). Accounting will see something the don’t like and try to fix it. But eventually the process that should have been done, happens. Now that JE needs to be undone.

For example (assuming Avg or Last costing), Ideal flow:

  1. Job created (No GL Trans)
  2. $1000 of materials is issued to job from Inv (DB WIP, CR Inventory) via STK-MTL transaction
  3. Job ships from WIP ($1000 DB to AR Accrual, CR to WIP) via MFG-CUS transaction
  4. Shipment invoiced ($1000 DB to COS, CR to AR Accrual) via invoicing

Net result is $1000 from inventory to COS

Now if it ships before material is issued

  1. Job created (No GL Trans)
  2. Job ships from WIP ($0 DB to AR Accrual, CR to WIP - there was nothing in WIP) via MFG-CUS transaction
  3. $1000 of materials is issued to job from Inv (DB WIP, CR Inventory) via STK-MTL transaction
  4. Shipment invoiced ($0DB to COS, CR to AR Accrual) via invoicing

At this point $1,000 is still in WIP, and Accounting thinks it should be in COS, so they do a JE to move that $1000.

Now $1,000 has moved from Inventory to COS.

It looks like all is right. Until someone closes the job. This creates a MFG-VAR and will create a $1000 debit to a Variance account and a credit to WIP. But since WIP was already credited by the JE, its been double credited. Now another JE is required to undo the first one.

6

Option 1: If you wish to know total quantity issued 100, then add Qty per as 100 in Job Material. Then do Job Adjustment for 50 qty with cost.
Option 2: If qty is not important, then just add one material called WIPMaterial and do Job Adjustment to bring total WIP material and material burden cost

7

Thanks, Arul. This is the method we’ve settled on. Seems to be working fine during testing.

1 Like