Part Class definitions

Epicor ERP 10
1

What are common or standard part class definitions?

2

A Part Class = a class of parts that differentiates that class from another class. There are different things that companies base their classes on, This depends on many factors. Types of Materials that you consume, how many buyers, how the accounting department wants to categorize inventory, etc.
My first pass is that you need a minimum of THREE part classes:

  1. Raw / Purchased material
  2. Sub Assemblies (Partially complete / stocked assemblies or partially fabricated machining)
  3. Finished Goods.
    The reason for these three categories is because these represent three different costing requirements. Raw/Purchased typically has no labor assigned. Sub-Assemblies has some labor, but is not finished, and therefore has no sellable value to the bank. Finished goods, are “ready to go”, and therefore is typically segregated by Accounting.

BUT… I almost always want to segregate the first category into multiple part classes… this is totally industry specific. In my old industry, we manufactured miniature transformers. We created about 15 different part classes… Pins, Wire, Bobbins, Cores, Cases, Laminations, Epoxy, etc. Each “Class” of material told you what it was.

Also, note that Part Classes can also optionally assign WHO the BUYER is for that class of parts. This can really help so that you don’t have to assign the buyer at the individual part level.

ONE MORE SHOEMAKER RULE: EVERY part gets a part class! I typically enforce this rule with a BPM to make sure that it is always assigned.

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3

One warning on part classes (actually applies to anything with GL controls) …

If you use GL controls on your part classes (almost always done to specify different GL Accts for raw material inventory and finished goods), changing the part class, with a QOH of the part, can leave dollars orphaned in a GL acct.

You should do a Qty adj to zero out the QOH before changing the part class. Then another Qty adj to restore the QOH after the class change.

edit

This also applies when changing the account specified by a GL Control.

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4

Thanks you for sharing!

5

What about if your new part class uses the same GL and you have on hand qty? We do average costing for all our purchased parts and now we want to break them up more so we can assign buyers.

Thanks in Advance

6

That should be fine.

An example of when it wouldn’t we be like if an inventoried raw material was changed to a part class that uses a different acct for inventory.

Receipts prior to the change would have DB the original acct. Issues after the change would CR the new acct.

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Thanks.