Updating material costs on open job

Hello all,

We are attempting to estimate our material costs for pending JOBs. When the JOB is created, it appears the material cost estimates are based on historical averages (avg cost method used for inventory) however, after we place orders for those components, the JOB costs are not updated for those materials. Second, if the parts are received and material is issued to the JOB, the material costs are not updated and continue to report historical averages from the singular point in time when the JOB was initially entered.

Is there a process to report/update what expected costs for JOBs are based on today’s inventory value and/or pending purchase orders for components which have not yet been received? It should be noted that once the JOB is completed, the costs are accurate on the gross margin report.

This example may help to explain the challenge.
Job is created. POs for parts are issued to vendors. The prices for these components which will be consumed on the JOB for the top level part have increased from $150 to $500. However, the JOB still reports those component costs at the previous avg inventory price of $150.

How do we get an accurate view of expected costs?

@mason.ridley Our first “operation” is kitting. I have a bpm that updates the estimated material cost from partcost when that happens so the estimate is closest to current costs.

We are a custom manufacturer, so some parts never existed before this job and have no costs, so the estimates were useless

One of the poorest documented items in Epicor is how Avg cost works. It should be called average inventory cost since it is ONLY updated when costs are received to inventory.

I would take Greg’s advice and use a BPM to roll up the costs.