Using Inventory for Specific Non-Production Projects: How to track costs?

For Engineering projects prior to release, we need to track costs of materials we use as part of the total project cost. When we create POs for specific materials to use on projects, we assign them to the correct GL account and project number so costs get captured correctly.

However, sometimes we use materials out of our inventory for Engineering related projects. Right now, all we do is quantity adjust the inventory so our inventory is correct and we use a reason code called “Engineering Use”. This is fine, but I would like to track that use by project so I can get a breakdown of all inventory used for a specific project.

My thought was to create a job using a job number specific to the project. Then, when material needs to be removed from inventory to be used on a project, they would issue material from inventory to that job. Then, at the end of the project, I can easily see what material was used and how much it cost to add to my project cost.

Would this have any negative effect? Sometimes jobs like this would need to remain open for years. I’m not sure what that would do on the financial side.

Does anyone have any insight or could recommend a different way of capturing that cost?

Hi Nick,

Do you have the Project module? (Thought I’d ask)

Mark W.

Presume they do have the PROJECT module… (How ya been Mark? We went thru epi-boot-camp- together).

As for Projects in EPICOR, vastly improved from 8.03.305 into E-9 and especially E-10… but EPICOR still won’t add a section for anticipated PO costs . Epi-fuctionality at time of receipt will add actual cost. Had to customize the screens, add a section to PO commitments, show receipt cost, and do math to show PO committed exposure. Asked for this change 10 years ago when I was a rookie consultant woith Epicor.

As per your need:
Epicor added PROJECT JOBS for non-mfg labor. Quite slick to be able to budget and collect costs, as well as have PO’s to specific WBS phases for installation via sub-contractors. You can always link a MFG-JOB to a PRoject WBS phase within a project, issue parts to that MFG JOB…

You will have WIP-Mtl on that MFG-JOB and the costs will show on the Project (after build cost analysis) based on the STK-MTL transaction or a direct PO buy to job.
How do you process the MFG-JOB matl out of the WIP??!?!?!? Would you ship it?

Now you get into PROJECT BILLING and managing the Invoicing.

Thanks guys,

Correct, we don’t have the project module and might possibly look into it in the future, however my need is just to track the inventory adjustments to each project. We are probably just going to try it out in a test environment and see what accounting thinks.

Nick

Projects is within Job entry… “PROJECT ENTRY”

Or… create an internal job and issue parts to it!