Epicor costing

Epicor ERP 10
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1

Hi,

I need to understand what is the best way to make costing if the same part can be purchased and manufactured in a company. Should i create 2 different parts, one for P and other for M? Also please let me know the Epicor forms where i can add costing methods.

2

Hi Mr. Vishal,

Form for Costing through
1.Costing Workbench
2.Cost Adjustment.

No need to create 2 different part. Epicor has an option called part revision.There you can able to define all your need such as Bill of material , bill of operations,supplier, cost etc…

3

Hi Syed,

But we can make 1 revision active at a time for one part. And if that part can be purchased and manufactured what part type should i chose ?

4

Hi Vishal,

By Default it should be Manufactured.

6

It seems that you are grappling with how to cost it when there are two different ways to acquire it…

  1. when you buy an item, it costs $10 each, but takes 15 days
  2. when you make the item, it costs $11 each, but takes 5 days

The problem is that once the parts arrive in stock, they are the same part, and should have the same part number so that they are used in common.

The best practice would be:

  1. set the method to be the most frequently used… if you mostly make it, then set it to Make.
  2. Cost it using the Make method.
  3. Now, when you need it fast, you make it… if you have time, you can override the standard and purchase it for a cheaper price.

COSTING: How this is handled depends on your costing method:

  • Standard: any difference will be posted as Variance
  • Average: the cost will raise and lower based on how many are purchased / made.
  • Lot/Last/fifo; all follow their rules.
3 Likes
7

@timshuwy touched on an option that you may consider.
You can do Lot Costing which means each Lot carries it’s own average cost.
So you could setup the part as Manufactured and when you Mfg the part the Job receipt will go into a Lot with the Lot cost inheriting the Job Cost.
Then if for some reason you have to purchase the part then when the PO Receipt is processed it will pick up the PO Price as it’s Lot Cost (plus any Mtl Burden).
So there is no standard cost here, but each Lot has it’s own cost.
I would setup your part type considering two things:

  1. How would you like to Plan for the part (determines if Job or PO Suggestions are created during MRP)
  2. Which treatment is more common. Say you purchase 80% of the time and mfg 20%. This means mfg is the exception. I even had a client setup the part’s Urgent Supplier as a themselves so when the Urgent lead time was tiggered the PO Suggestion would say to purchase from themselves which is not possible but it was the indicator to tell Production to create a Job instead. (you could create a BPM that would create a Job when a PO Suggestion for the Urgent Supplier is created.)
8

Thank you all the feedback. As we have different costing method. We prefer to choose 2 different products(one for purchase and other for sale)