Zero Cost Mystery

Kinetic ERP
1

Finance has asked me to look into a profitability issue. For some parts it looks like we made 100% profit, because the costs are all $0. Reviewing the part transaction history, I can see this:

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Here you can see on the 7/22 date a new shipment is created to the customer, and the unit costs are 0. This causes our profitability to get all messed up. We can’t figure out why the costs went to 0 here. I am no finance expert. Can you suggest where I should start looking?

We dont run MRP or use suggestions. We dont run global scheduling. Jobs are manually created using the sales order as demand.

Thank you for your time!
Nate

1 Like
2

Did the shipment occur before materials were issued? Before labor reported?

4 Likes
3

Materials were issued and labor was recorded prior to the shipment date.
I see mtl issued on 2/18/25, labor recorded from 2/17/25 to 7/23/25… hmmmm

2 Likes
4

Is this a made to order or made to stock part? If stock, do you use standard costing?

5

Make to Order. Last Cost.

6

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QC approved on 7/22 and then again on 7/23. This is the final op. Does this point to an issue?

7

Run a Production Detail report for the job and enable the material and labor transactions. Also, did someone close the job and then reopen it?

3 Likes
8

I guess the whole order was for 80 pcs. QC signed off multiple times as small batches of the parts were pushed through. This might be related to the messy split job issues we have. We are still curious why the costs would drop off like that.

We dont think the job was closed and reopened. I have the production detail report, but I don’t see any issues on it. Aside from the inflated PL% due to the zero costs for some shipments.

9

This might explain it…

10

I think we had this similar issue and IIRC we had to run the Capture COS/WIP process for Part tran to show the cost for MFG-CUS transactions.

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We run it once a month, sometimes more often.

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From our Profitability report. The costs should not have disappeared. :thinking:

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13

so run it again and see if you see cost show up on Part tran.

14

You may want to look at how that Total Cost column is calculated and walk back through the transactions that make it up. The report could be using invalid assumptions, or the data could be bad.

1 Like
15

Field help is not available for this. Do you have some inside access?

16

also confirm from Job Tracker that you see Costs on the job.

17

Check the completion time on your QC operation reporting qty vs your shipment time from 7/22. I bet the qty was reported after the shipment. Since you had previously reported (30) on the job and shipped (30) I believe it didn’t have a qty to cost against.

3 Likes
18

Is the Job still open? If it is, is there anything in WIP?

19

I can see costs in the Assembly Totals under Job Tracker.

The job is closed.

1 Like
20

Is this a standard screen? If so, the clipped screen doesn’t show the source.