I use quantity adjustment to return items to inventory that were on jobs, but we aren’t exactly sure which job they were on. Recently finance notice that the parts I adjust back into inventory have a value of zero. I am wondering what causes the value to adjust to zero and how to stop that from happening going forward. Has anyone else experienced this?
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A couple of things…
First, “Return Material” screen may be a better option to return material rather than qty adjust. This way you are also taking the cost off the job for material not used. It may be a bit better tracking as well.
Second, sounds like these parts may not be standard cost? For Example, standard cost would adjust the part with just that, a standard cost. If you are adjusting into, say a new lot and the part is Lot FIFO. That lot may not have any cost, and you would also need to do a cost adjustment.
A few more details on the parts and transactions may lead us down the path to a better answer.
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Another option might be Job Receipt to Inventory.
We use the Job Receipt to Inventory (moving CoParts back into inventory), there is a cost tab that helps with the costs portion.
Hello Adam and Ken,
Thank you for responding. We do use return material when we know which job the parts were assigned to, but sometimes parts will come back with no way for us to know what job they were apart of making return material impossible to use. We currently use last cost for our system. I am not super knowledgeable of the finance side of things, being the inventory coordinator. From a finance perspective do you know what issues we might run into or downsides to switching from Last to Standard?
Hi Crystal,
Is this something that happens a lot or just a few times? You may want to notify accounting when it happens so that they can do a cost adjustment to re-cost the inventory that was adjusted in through a quantity adjustment. They can look up the last cost and add it to those parts, even if it was older material that may have cost less at one time.
The reason it is costed at zero when you quantity adjust it in is that the cost is unknown at that time. The system has no idea where it should pull the cost for those parts (did it come from a PO, did it come from a job being returned, etc.), even if you have a reason code that suggests where they came from.
Changing costing methods affects more than you know. It will re-value all of the inventory and your finance team will need to account for the difference with the auditors. It’s a pretty big deal in the finance world. Also, it would require a cost roll or cost adjustment to be set up as a standard cost part. This would need to done for any standard cost parts on a regular basis. I’m sure they had their reasons for choosing Last Cost.
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Hello Beth,
This happens every time we inventory adjust quantity in the system. I attached a picture as an example. You can see it has a cost associated with the previous transaction. I am not sure how to get that cost to transfer over to the quantity adjusted transaction. If it is because we use last cost and the only fix is to manually go in and adjust the cost each time, we may have to consider switch despite the amount of work it would take.
Thank you for your help.
It appears that Epicor has changed something in its upgrades. In 2025.1, I made a Quantity Adjustment for a part with a Costing Method of Last and the transaction, ADJ-QTY, was made at the Last Cost from the Part Cost.
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It is my understanding that 2025.1 is an upgrade for Kinetic and not for Epicor 10.
Kinetic 2025.1 is effectively “Epicor 12.0”, so in that regard, it is 2 full “versions” ahead of Epicor 10.
The Kinetic Upgrade Release Guide 2025.1 discusses the path required from Epicor 10.1 and higher.
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Finance should also be concerned about the cost that is being left on the job that is not being relieved of the material
Should look at tightening up the process to capture the job numbers
Do you have AMM? If the job is still open, the materials issued to it will show in the WIP tab in part tracker, and the job will be shown there.