R&D Parts Used for Production

Yahoo Archive
1
--- In vantage@yahoogroups.com, Thomas Rose <t.rose@...> wrote:
>
> We pretty much take the opposite approach. Every part is stocked, whether it is primarily for R&D or not. Then, when R&D pulls a part from stock, the inventory adjustment reason code is R&D, and we set that reason up with an R&D expense account number. This is a very simple setup and works well for us. I will say, though, that we have very few parts that are exclusively used for R&D. Usually, if R&D is using something we do not normally stock, they will buy it and expense it directly without ever receiving into inventory. (8.03.403)
>
> Thom Rose
> Controller
> Electric Mirror LLC
> HOTEL LUXURY
>
> "The World Leader in Back-lit Mirrors & Mirror TV Technology"
>
> T 425 776-4946
> A 11831 Beverly Park Rd, Bldg D, Everett, WA 98204 USA
> www.electricmirror.com<http://www.electricmirror.com>
>
>
> From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of laraines422
> Sent: Friday, May 08, 2009 9:31 AM
> To: vantage@yahoogroups.com
> Subject: [Vantage] R&D Parts Used for Production
>
>
>
>
>
> Hi All -
> Does anyone out there use Parts - that are usually designated for R&D - but may end up using them in Production?
>
> Typically, our process is to assign a R&D Part Class to the Part and receive it to a non-nettable bin.
>
> We sometimes use these in Production; if we use the R&D Part in a Production Job, we want the COGS to reflect that it's coming from Inventory and not a R&D Expense Account. Our quick fix to accommodate this has been to adjust the quantity out, change the Part Class, and adjust the quantity back in. What was previously a R&D Part is now Inventory and can be used as such (and our Accounting Manager does her magic - if necessary - to confirm correct debit and credit postings).
>
> Our process isn't perfect (we see errors with R&D Parts transferred or returned to nettable bins, costs are out of whack, etc.) - so we've been looking at some additional and/or other options to manage these, including:
> 1. Non-quantity bearing.
> 2. Stock vs. nonstock. We've been using "stock" out of habit - but if we're missing something by not using "nonstock", please let me know! The Parts are supposed to be in non-nettable bins, so I'm unsure as to what the additonal "nonstock" flag would buy us.
> 3. Writing BPM warnings to alert users when R&D Parts are received, transferred, returned, etc.
> 4. Other?????
>
> If anyone has designed a different, effective way to manage R&D Parts that may be used for Production, I'd like to hear your suggestions.
>
> Thanks in advance -
> Laraine Song-Treadgold
> ERP Administrator
> SkoFlo Industries
> laraine.song@...<mailto:laraine.song%40skoflo.com>
>
>
>
> [Non-text portions of this message have been removed]
>

Thanks for the input, Thom. We're heavy on the R&D side; we could take your approach, but then all of our R&D purchases would sit in Inventory, which won't make Management too happy. (We do use Production parts in R&D projects, and those get costed accordingly with the R&D Job setup.)

BTW - we're neighbors! Our company is in Woodinville, and I live about 3 minutes away from your offices. Our Epicor CAR asked us last year if we'd like to host a NW User Event, which we're still considering for sometime in the future - although our CAR has changed (typical, huh?).
2
Hi All -
Does anyone out there use Parts – that are usually designated for R&D – but may end up using them in Production?

Typically, our process is to assign a R&D Part Class to the Part and receive it to a non-nettable bin.

We sometimes use these in Production; if we use the R&D Part in a Production Job, we want the COGS to reflect that it's coming from Inventory and not a R&D Expense Account. Our quick fix to accommodate this has been to adjust the quantity out, change the Part Class, and adjust the quantity back in. What was previously a R&D Part is now Inventory and can be used as such (and our Accounting Manager does her magic – if necessary - to confirm correct debit and credit postings).

Our process isn't perfect (we see errors with R&D Parts transferred or returned to nettable bins, costs are out of whack, etc.) – so we've been looking at some additional and/or other options to manage these, including:
1. Non-quantity bearing.
2. Stock vs. nonstock. We've been using "stock" out of habit – but if we're missing something by not using "nonstock", please let me know! The Parts are supposed to be in non-nettable bins, so I'm unsure as to what the additonal "nonstock" flag would buy us.
3. Writing BPM warnings to alert users when R&D Parts are received, transferred, returned, etc.
4. Other?????

If anyone has designed a different, effective way to manage R&D Parts that may be used for Production, I'd like to hear your suggestions.

Thanks in advance –
Laraine Song-Treadgold
ERP Administrator
SkoFlo Industries
laraine.song@...
3
We pretty much take the opposite approach. Every part is stocked, whether it is primarily for R&D or not. Then, when R&D pulls a part from stock, the inventory adjustment reason code is R&D, and we set that reason up with an R&D expense account number. This is a very simple setup and works well for us. I will say, though, that we have very few parts that are exclusively used for R&D. Usually, if R&D is using something we do not normally stock, they will buy it and expense it directly without ever receiving into inventory. (8.03.403)

Thom Rose
Controller
Electric Mirror LLC
HOTEL LUXURY

"The World Leader in Back-lit Mirrors & Mirror TV Technology"

T 425 776-4946
A 11831 Beverly Park Rd, Bldg D, Everett, WA 98204 USA
www.electricmirror.com<http://www.electricmirror.com>


From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of laraines422
Sent: Friday, May 08, 2009 9:31 AM
To: vantage@yahoogroups.com
Subject: [Vantage] R&D Parts Used for Production





Hi All -
Does anyone out there use Parts - that are usually designated for R&D - but may end up using them in Production?

Typically, our process is to assign a R&D Part Class to the Part and receive it to a non-nettable bin.

We sometimes use these in Production; if we use the R&D Part in a Production Job, we want the COGS to reflect that it's coming from Inventory and not a R&D Expense Account. Our quick fix to accommodate this has been to adjust the quantity out, change the Part Class, and adjust the quantity back in. What was previously a R&D Part is now Inventory and can be used as such (and our Accounting Manager does her magic - if necessary - to confirm correct debit and credit postings).

Our process isn't perfect (we see errors with R&D Parts transferred or returned to nettable bins, costs are out of whack, etc.) - so we've been looking at some additional and/or other options to manage these, including:
1. Non-quantity bearing.
2. Stock vs. nonstock. We've been using "stock" out of habit - but if we're missing something by not using "nonstock", please let me know! The Parts are supposed to be in non-nettable bins, so I'm unsure as to what the additonal "nonstock" flag would buy us.
3. Writing BPM warnings to alert users when R&D Parts are received, transferred, returned, etc.
4. Other?????

If anyone has designed a different, effective way to manage R&D Parts that may be used for Production, I'd like to hear your suggestions.

Thanks in advance -
Laraine Song-Treadgold
ERP Administrator
SkoFlo Industries
laraine.song@...<mailto:laraine.song%40skoflo.com>



[Non-text portions of this message have been removed]