Manufacturing environment here. Company expenses probably 60% of our parts used in assembly process. They have set a relatively high piece price threshold to classify expense parts. The problem is any one of these parts could have a long lead time and shut down assembly. Setting them as expense with no checkboxes yields no vision to on-hand inventory. Currently using kan-ban cards and would like to use MRP but it seems it would be no use if the part is not quantity bearing. Additional to that is the loss of inspection flags etc. that are resulting in missed incoming inspections. Does Epicor offer a way to expense items on the cost side but still track inventory for the purpose of MRP?
I would set them up as a different part class with the GL control going to an expense account. When accounting reconciles the stock status to inventory they can use the part class filter and exclude the expense(d) part classes. That way you get all the benefit of MRP, PO Suggestions, minimum on hand, inspection, etc.
Set up a couple parts in a test environment to prove it through. You’ll have to cycle count those parts (manually). Be sure to change the part class, set quantity bearing and stock flag before you adjust quantity to your current on hand.
Jenn
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