When doing a cost rollup on a part marked as purchased, but having a bill of material and bill of operations(because we sometimes make instead of purchase), I am getting a labor and burden cost. I swear I found a checkbox at some point to bypass the consideration of the method of manufacture in rolling a purchased part cost, but I can’t seem to find it again. Anyone have any ideas?
I think it’s something about ignore part revision?
Do you know where that checkbox is? I don’t have it as an option on my rollup screen.
might be here:
Site Cost Maintenance
Ok, that is the checkbox that I remembered, but it is checked and this is still happening. May have to put in a case. Thanks for the help.
The screen shot above is from the Costing Workbench for me. I always un-check the “Consider Pull as Assembly Settings” because i don’t want lower level mfg. parts rolling all the material , labor and burden costs in to the material of the top level. I want to see then in their individual bucket.
The tell costing workbench to not rollup purchase part’s method, it’s in Site Cost Maintenance under Engineering > Setup
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Thanks for chiming in Al.
I realized that the labor, burden, and subcontract costs must be removed manually through cost adjustment when a part is changed from manufactured to purchased. Would be nice if the rollup program did this automatically, but I am sure there are reasons it does not.
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Who knows Ryan, I feel the same as you though.
I’m not sure of your specific situation, but consider that Epicor expects that there is one “default” way to source this part and then there are alternatives to that. If you expect to purchase the part, but lead times require you to build some in the meantime, you don’t have to change the part type from Purchased to Manufactured. You can issue jobs for a Purchased part as long as it has a method (heck even if it doesn’t).
Which cost method do you use? If it’s average cost, then shouldn’t those labor, burden, and subcontract costs exist?
We are standard cost, so I prefer the purchased price be used as the standard. Thanks for the input!
Makes total sense for standard.