Part Costs

I have tow parts, engineering is the same, but they are showing two different costs when they should the same. They use the exact everything. The cost difference is int he labor. The white part is 4.53 labor, the red is .90 labor. Yet they both use the exact same amount of labor in the engineering. I’m confused.

Lots of options here. Can you show theblabor transactions for some of the last parts made?

Wait, so the when people are logging the labor on the jobs, the system uses that to configure the costs? Even for STD costs?

Standard price for a part is standard price or should be. Has anyone done anything in the Cost Workbench? But your profitability and other things for the part depend on the cost going into the part. If I have a standard cost of $100 for the part. Then I can sale it at 100 or some other factor higher. But it may only cost me $50 to make it. So out of the shoot with labor and parts I am 100% profit since I have a 100% standard mark up. So several options but standard price and cost to make the part are two different things. That can produce a variance on the value of the part going into inventory as well. Been a little bit since I did this for a site I don’t manage anymore but I think I am still staying this correctly.

I did a cost roll-up a few days ago and today they brought this too me. I do not see how they can be ran on the same machine, same engineering, same cost rate, and have two different labors. UNLESS Epicor uses the old jabs to look at the labor instead of the operations.

You should be able to manually calc the expected cost. By manually, I mean with pencil and paper. If the cost rollup doesn’t match, then dig into the BOM’s make sure something that’s not so obvious isnt different. Like setup time, fixed qty vs qty per, etc…

Unfortunately as @ckrusen stated you probably just need to do some manual digging on a few jobs that made this part, and the cost of the parts going into the BOM. Epicor could be calculating wrong, but more times than not it is usually a misunderstanding on our part, or a user set a field incorrectly that affected it. Let us know if you need some help on where to start or how to start.

Lets go back on step, how is it calculated by Epicor? Is it using the former jobs for this part and using that or just what is in the engineering as an est part cost?

What Costing Method are you?
If you are Avg Cost it uses the cost that is in WIP on the job when you receive it to inventory or ship it.
If you are STD Cost it uses the cost that is on the BOM at the time of the Costing workbench and you POST. Or what ever value you put into the STD cost section of cost adjustment. STD cost does not use history to determine the part cost.

STD. So it uses what is in the BOM for material, but Labor costs would be the operations, correct?

yes is used the cost on the resource groups that are doing the Operations to determine labor.

Cost roll is only for standard costs, and it uses calculated costs from the engineering method, not job costs. (you can roll average costed parts, but it populates standard cost, and ends up being more for informational purposed)

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I suggest going into Cost Adjustment and comparing the values displayed under each cost type.

I believe (but could very well be wrong), that running a Cost Rollup on a part that uses a method other than STD, will still run, and update that part’s STD cost. But since the part does not use STD cost method, any time the parts cost is used, it will pull from the specific cost (AVG, LAST, etc…)

Do a PartTran History for the part, and see if any ADJ-CST entries exist.

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When I’ve done cost rolls, (and almost everything is set to average cost here) it calculates it from the methods. A large quantity of our parts never get updated with Average cost, because they exist solely on make to order jobs so they never hit inventory. We roll costs to get some idea what we think the granular costs would be.

Do you recall if it updates the Standard costs fields of the PartCost table?

Yes, it puts the cost that it calculates into standard cost.

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@ckrusen on a similar line, is it possible to tell what the cost was before the cost roll up after you did the cost roll up? Reason why is a cost roll up was done, but they did it for every part in the company and set it to only one Reason Code. So only one dept got the hit and not every dept appropriately. So I am trying to fix this and what I am needing is to try and figure out what the cost was for parts before the roll up so I can the know the adjustment amount after the cost roll up and use Journal entries to fix.

Cost adjustments show up in the part tran table.

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I don’t know Costing Workbench well enough to answer. But I think it generates Log files in c:\EpicorData\Companies<company ID>\Log\CostWorkbenchRollup…log

(c:\ being on App Server’s C: drive)

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Yes, I saw that. Does this number represent the adjustment, meaning the difference between what it was and what it should be? When accounting captures the Cost Roll up, they just see the adjustment. We need to know how much was on each part. Is the number in part trans that number?