Part Last Cost: Invoice instead of Receipt

Yahoo Archive
1
Ahh, yes you are correct. Our procedure is that if we accept the invoice price, we cancel the receipt, change the PO, and re-receive. It is a PITA but it gives us what we want.

Mark W.


On Wed, Jan 8, 2014 at 9:31 AM, <rbird@...> wrote:

 
<div>
  
  
  <p></p><p>Thanks Mark,</p><p>But that is the perceived problem, the Last Cost for Purchased Parts is NOT the Last Invoiced Cost, it&#39;s the last PO Receipt Cost. Perhaps we are missing something in your explanation, please correct me if that is the case.</p>


</div>
 


<div style="color:#fff;min-height:0;"></div>

2

This was my company's first year end in Epicor 9.05.700B2 and their first Purchased Parts Cost Roll Up and two accountants come to me asking where Epicor's Last Cost in Part Tracker is generated from for Purchased Parts.  As far as I can tell it is updated when a PO Receipt is processed the system runs a Cost Adjustment transaction to update the Average & Last Costs for the part.  (If someone knows otherwise please correct me).

 

They then asked me why Epicor doesn't update the Part Last Cost off of the Posting of an AP Invoice and if there was a way to do it.  I have looked around and I cannot find a way to do this, there doesn't seem to be an option in the system to calculate Average or last off of certain transactions or actions, like  posting an AP Invoice. 

 

As I asked more questions (the company I previously worked for did not have any problem with Last Cost being calculated off the PO Receipt), I found that over 80% of our purchased materials are plastics type commodities and that the purchase price is based on the day of delivery, not the day of shipment nor a quote from the supplier.  As far as I can ascertain this is common practice in the plastics industries.  Apparently this causes all kinds of PPV's and Buyers are in the habit of not even bothering with the PO Unit price since it will be different every time. Obviously this drives accounting nuts to the point that they now have dashboard to monitor open PO's looking for any suspicious Unit Prices and contacting the buyer to correct.  Besides that, since the Last Cost comes from the PO Receipt the Costing Workbench is not of much use to them so we now have a dashboard that takes @ 20min to run that looks up the Last Invoice Cost for each part and now they are talking about using that as a purchasing monitoring tool. 

 

I think this is all crazy and that the whole problem could be solved by updating the Last (and/or Average) Cost when an AP Invoice is posted for the part AND somehow stopping all PO Receipt Cost Adjustments. 

 

My thought was do somehow trigger a Cost Adjustment from the AP Posting with a BPM but I'm not sure how to do this and I was hoping other may have also encountered this Accounting requirement and I'm curious how you solve it. 

3
You can do this through the Costing Workbench. When you select parts to process, you have the option to choose purchase or make and then you can select which cost field you want to use as your starting point: Standard, Average, Last, etc. You then run the Change Report to see the change from the current price and make your adjustments. Finally, do the Cost Roll Up to revalue your inventory and to update your costs.


Mark W.



On Tue, Jan 7, 2014 at 7:54 PM, <rbird@...> wrote:

 
<div>
  
  
  <p></p><p>This was my company&#39;s first year end in Epicor 9.05.700B2 and their first Purchased Parts Cost Roll Up and two accountants come to me asking where Epicor&#39;s Last Cost in Part Tracker is generated from for Purchased Parts.  As far as I can tell it is updated when a PO Receipt is processed the system runs a Cost Adjustment transaction to update the Average &amp; Last Costs for the part.  (If someone knows otherwise please correct me).</p>

Â

They then asked me why Epicor doesn't update the Part Last Cost off of the Posting of an AP Invoice and if there was a way to do it. I have looked around and I cannot find a way to do this, there doesn't seem to be an option in the system to calculate Average or last off of certain transactions or actions, like posting an AP Invoice.Â

Â

As I asked more questions (the company I previously worked for did not have any problem with Last Cost being calculated off the PO Receipt), I found that over 80% of our purchased materials are plastics type commodities and that the purchase price is based on the day of delivery, not the day of shipment nor a quote from the supplier. As far as I can ascertain this is common practice in the plastics industries. Apparently this causes all kinds of PPV's and Buyers are in the habit of not even bothering with the PO Unit price since it will be different every time. Obviously this drives accounting nuts to the point that they now have dashboard to monitor open PO's looking for any suspicious Unit Prices and contacting the buyer to correct. Besides that, since the Last Cost comes from the PO Receipt the Costing Workbench is not of much use to them so we now have a dashboard that takes @ 20min to run that looks up the Last Invoice Cost for each part and now they are talking about using that as a purchasing monitoring tool.Â

Â

I think this is all crazy and that the whole problem could be solved by updating the Last (and/or Average) Cost when an AP Invoice is posted for the part AND somehow stopping all PO Receipt Cost Adjustments.Â

Â

My thought was do somehow trigger a Cost Adjustment from the AP Posting with a BPM but I'm not sure how to do this and I was hoping other may have also encountered this Accounting requirement and I'm curious how you solve it. 

</div>
 


<div style="color:#fff;min-height:0;"></div>

4

Thanks Mark,

But that is the perceived problem, the Last Cost for Purchased Parts is NOT the Last Invoiced Cost, it's the last PO Receipt Cost. Perhaps we are missing something in your explanation, please correct me if that is the case.