Hi Epicor community,
We have noticed an issue recently that is affecting gross margin report.
This was noticed because of the high material cost for one particular assembly.
We receive assemblies back sometimes that have the wrong firmware revision on them.
There is no material cost to reprogram these and send them back to the customer.
However, when the RMA is dispositioned to a W.O. and the material cost is over-ridden and zerod out the work order still shows the original material cost instead of zero.
The RMA Sales Order is for zero amount and I believe this is causing a high negative gross margin because it is considering the material cost of the work order when processed.
Are we doing something wrong? Should we follow a different process? Or is this a bug or design flaw?
The job still shows the expected cost, but you should not see any actual cost once dispositioned to the job. Confirm by using Job Tracker to retrieve costs.
Matt,
I agree, there should be zero cost for material when dispositioned to a work order when over-ridden. But there is material cost in the job entry or job tracker.
I even opened a ticket and did a Webex sesison with Epicor and still waiting for a response.
No, technically this should be zero cost transaction. We just reprogrammed the assemblies and send them back to the customer. I believe the labor took less than 2 hours.
We open a new sales order since the original was closed for zero $ and create a new work order and disposition the RMA# to the new W.O.
It sounds like your part is standard costed. If so, all transactions will happen at standard cost. In a test environment, you could try changing the part to average cost. It would then take the actual cost from the job for margins as long as you ship from the job. I don’t know if it’s possible for you to change the part cost method in live but it might help understand the transactions. You do need to adjust out any inventory before changing the method and then adjust it back in.
Jenn
Jenn, thanks for the suggestion but our parts are already avg cost.
The fix was the checkbox in company configuration > Modules > Production > QA > Move Costs to DMR.
After checking the box, restarting the IIS server and going through the process from a new sales order again that seems to have done the trick.