We have a job in our system to build a pump. Part No 1981-10. The twist is that we had a demo pump that we had built several years ago. It is actually a fixed asset and is almost entirely depreciated. We want to use that pump, add some additional parts (things that had been scavenged over the years), produce and ship. What is the best way to go about it. Do we just not issue any part that is still on the demo pump to the job and create a variance there. Do we receive the parts that are in fixed assets at $0 cost. We need help understanding the best way to transact this in the system so that things flow correctly and that the tracking process isn’t overly burdensome.
We are not using Asset management module in Epicor.
Assuming your goal is to capture the additional cost of labor and parts but not cost of the demo pump, create a job but don’t do Get Details. Manually add/issue the additional parts, complete the job and receive to inventory. Note that this will be less cost than a normal FG for that part, so if you are using average costing, your average will be reduced. Accounting will need to do a journal entry for the remaining depreciation, although this will be the same as for any fully depreciated asset.
With standard costing you will get a material variance and a labor variance for the difference between what the demo pump job actually cost and the standard cost.
Creating a Job Order without getting details will not work for the operation team.
The pump we are trying to assembly with the new Job Order has more than 600 components. We should keep tracking of the parts we used on the pump on an excel sheet or manually. It will be a mess.
We want to do this instead:
We have a pump that is not in stock on the system. We have it physically and there is an asset account that we were depreciating over the years.
We want to disassembly it and use the main parts after inspection.
For the parts that we determinate that are usable, we want to do a job order and receive them in stock as if we have fabricated it. Doing this, it will generate a variance in inventory, because we are not using any material or labor. We just do this to put the loose pieces in stock.
We want to make a job order for the pump PN 1981-10. This BOM is already in our system and has a standard cost associated.
We will issue to the pump order all piece we will re-use (the pieces received in stock in step 3)
Once we issue all re-usable parts, we will be able to run a shortage report of the pump order to completely know the shortages.
Then we will complete the pump with parts from our stock.
Note 1:
We will use a special sequence number for the job order we will create for the reusable pieces (Step 3). So, we will be able to identify in the system the exact quantity of pieces we will re-use and the exact cost we will increase our inventory with all these transactions.
This increase in inventory will be due to all parts we will receive in stock at standard cost, without any expense in material or labor. We want to compensate al these variances against the fix asset (step1)
Doing this process will be simple for the operations team however, we want to know if you see any problem in the accounting side.
If you have Epicor Test or Pilot setup, try what you laid out and then have accounting run the WIP report and check to see if/what issues arise for them.
@sk.patchai
Create a sales order with a part on the fly part number
This will create a demand for a make to order pump.
Create a job linked to the order,
Get details for the pump
Issue the parts from stock that you need to make the pump a good unit.
If finance wants to put some cost into the job for pump being rebuilt - to a job adjustment to material.