STK-UKN Transactions do not record a MtlUnitCost; what is the correct way to Issue material for machine breakdowns?

Epicor ERP 10
1

Hi all,

For starters, as of now we don’t use the Capture COS/WIP yet; we’re working with a portion of our ERP system.

We have two warehouses that purchase inventoried parts and stock them for machine breakdowns. (We have a little over a hundred machines ranging from weld cells, lathes, stamping press that we use to manufacture automotive components and ship to our suppliers)

We moved the inventory from a different system into Epicor in March, with a plan on using Average costing, as it was a manual process and the part cost were not being updated in the other system.

Whenever a part is taken out of the warehouse to repair a machine, the clerks use a Issue Misc Material screen, and enter the reason code (the department the item is being used in). At the end of the month, a report is run for all of the material issues that joins to the part cost table to calculate the amounts that each department used. We set up cycle counting in the warehouses as well to help with inventory accuracy; and we’ve run into a UOM issue where the previous system stored the cost of the part based on a different UOM. (So, the old system priced each foot of hose at say 24cents;) The quantity put into epicor was the number of feet of hose.)

After cycle counting; the count was posted and the adjustment made brought the on hand qty to 0. (i assume is was a part that was never marked as inactive in the old system, and moved over into Epicor.) Our clerk noticed they had zero on hand, and it being needed, ordered a box of tube and received it in. What seemed to happen, is that the usage report is showing the cycle count discrepancies (344 pieces) multipled by the current cost of a box ($100+)

So; going to replace the usage reports here; and would like to report the cost of the part at the time it was issued which I would think is in the Parttran table. That’s not the case for STK-UKN transactions from what I can tell.

What is the best / correct way to issue material to a department or machine?

2

STK-UKN partTran records do in fact have MtlUnitCost.

Make sure the parts cost file is correct. and that the cost method for the part is what you want.

Run the WIP/Recon report, filtering for just tran types STK-UKN, and see what you get. (make sure to select “Both Posted and Unposted”)

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3

Hi Calvin;

Looking at some of the tables, the Cost Method in the part setup is Average, But the STK-UKN transactions for some of the parts are using the Standard cost method, so there isn’t a cost associated in that transaction field.

What is the appropriate way to check for the parts setup incorrectly, and do they get resolved using DMT or the Costing workbench?

Thanks,

Aaron

4

Check the cost method for the part on the Site tab.

The cost method on the Details tab really only is used when a new site is added to the part. Or if you change the cost method on Detail tab, it should ask if you want to update all sites with the new method.

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5

I see now, the majority of these parts are marked as standard.

To change that field, with it being greyed out; are the proper steps to

Remove all the On Hand pieces
Update PartPlant.CostMethod
And then Adjust these pieces back in?

At that point, still using STK-UKN transactions will allow us to capture that cost at each part transaction, instead of looking at the partcost file?

Am I on the right path? Is there anything else I need to look out for?

6

Yes. (kind of)

  1. Use Qty Adjustment to zero out QOH in all bins of the part.
    I say all bins, because while having (5) in bin ‘A’, and (-5) in bin ‘B’ nets to zero QOH, you still couldn’t do a cost method change. Do a qty adj of )-5) to bin A, and of +5 to bin B.
    This will create ADJ-QTY part transactions, using the current cost and qty adjusted.

  2. Use Cost Adjustment to set the desired cost.
    This probably won’t create any part transactions as there is no QOH, so the value must be zero. If it does, create a ADJ-CST, the value would be zero.

  3. Use Qty Adjustment to restore the QOH (in the desired bin).
    This will create ADJ-QTY part trans, using the newly set cost, and the updated qty.

If you were using the GL functions of inventory, and assuming:

  • You have 15 of ABC-123 on hand
  • The cost method is STD, and the STDCost is $1.00
  • and you want to change to an Avg cost method with the average being $1.25

the part trans would look like:

GL Acct   Type     PartNum     Debit    Credit  
INVENTORY ADJ-QTY  ABC-123              $15.00
VARIANCE  ADJ-QTY  ABC-123     $15.00
INVENTORY ADJ-QTY  ABC-123     $18.75
VARIANCE  ADJ-QTY  ABC-123              $18.75

The first two lines are for the Qty Adj to zero. the last two are for the Qty Asd back to your original QOH.

The net change the accountants would worry about, and what the Capture COS/WIP process does is to make summarized GL Transactions of:

GL Account   Debit   Credit
INVENTORY    $3.75
VARIANCE             $3.75

Your Inventory GL was debited by $3.75 (the change in value of part you adjusted the cost of), and Variance account was $3.75.

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7

It makes sense; the majority of parts were updated with an Average Material Cost when (I thought) I changed the cost method to Average; so there is cost in the field.

So I actually need to remove the pieces from the bin; use Part Plant and DMT the cost method to average there, and then DMT the on hand back in?

I was under the impression I had changed the cost method initially; but it was under the default site parameters on the Pats Detail tab. under the Site tab, the cost method is actually set to standard.

8

Yes.

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