Skip AR Clearing and post right to COS

Epicor ERP 10
1

We currently use the AR Clearing (have been since V8), and now want to have COS go directly to expense accounts upon shipment.

Is it as simple as clearing (as in make blank) the AR Clearing account in the Inventory COS & WIP GL Control?

The way it works now (I may have the CR’s and DB’s backwards),

  • STK-MFG will CR our inventory and DB our WIP
  • MFG-CUS will CR WIP, and DB the AR Clearing account (all trans got to this DB’s account)
  • Invoicing will CR the AR Clearing, and DB the COS account based on the ProdGroup

What we want is

  • STK-MFG will CR our inventory and DB our WIP (no change here)
  • MFG-CUS will DB the COS account based on the Product group.

This way COS is captured prior to invoicing.

2

Okay, I tried the following in the test environment.

  1. Shipped two items on an order. The items had two different Product Groups that each specify a COS Acct.
  2. Ran WIP/Recon. The two STK-CUS show, with the AR Clearing Acct (as specified in the GL Control for “Inv COS & WIP”) being debited, and Inventory being credited.
  3. Changed the Inv COS & WIP GL Control set in company Config, so that the AR Clearing field is blank.
  4. Shipped more of the same two items(from the same order), on a new packer.
  5. ran the WIP/Recon report.

I see the 4 STK-CUS transactions but only the credits, NO DEBITS to the COS accts!!!

The WIP /Recon even shows unbalanced GL Transactions!!

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3

I think I’ve figured it out, but would really appreciate it if someone could confirm.

There’s a setting in Company Config (pict below). Unchecking the “Use A/R Clearing Acct”, causes shipments to debit the COS directly, skipping over the need for an Invoice to do it.

However, after an invoice is posted, the Invoice transactions never shows in the WIP/Recon.
Is this because there’s nothing to show, as the transaction to move to COS has already happened?
Or possibly, becuase the invoicing process credits and debits the the same COS account, and trans that net to zero don’t usually show?

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1 Like
4

Transaction Type Invoice on Inventory WIP Reports only works in conjunction with IF AR Clearing Account is Flagged True in the company config.
if Its False system directly debits COS which does not require any further process to recognise the COS.
This is By design.
Regards, Habib

2 Likes
5

Thanks Habib, Just needed confirmation.