I have a handful of part numbers that are, and have always, gone to variance. I have checked setup, GL codes, etc. I, for the life of me, cannot find the reason why. Any thoughts?
We close the job to inventory just like normal and these handful will always go to variance. They have since we started Epicor in 2013, way before my time.
Thanks!
What exactly do you mean? When a job of Make to Inv is finished, the entire (or some) cost in WIP goes to the variance instead of inventory?
This will happen if the finished part uses STD costing.
A MFG-STK transaction moves the cost from WIP to Inventory (or what ever account may be setup by an applicable GL control). If the part is STD costed, Inventory will only get the Qty rcvd x the STD cost. Any difference between that and WIP will go to a variance account.
What shows on the WIP Recon report for just that job?
Yes. Was that limited to just one job?
Can you show the details with the transaction types?
There should be a pair of MFG-STK transactions. One to credit WIP, and it’s match to an Inventory account. Now that I look again, you don’t seem to have any trans that hit the Inventory account.
Do you receive the mfg’d parts to Inventory, before closing the job?
Do you manually receive parts to inventory from jobs, or do you use the “Auto Receive to Inventory” checkbox in the part/job operation? It sounds to me like these parts don’t have this checkbox checked and you aren’t manually receiving the parts into stock. That would explain why the parts have always had this variance.
We do manually receive these in to stock and we do so before closing the job. There was no MFG - STK. Just MFG - VAR. I am chasing down the avg costing vs std costing that was mentioned earlier.
The MFG-VAR transaction occurs during the closing process of a job where there is WIP leftover when the job is closed. If there was no MFG-STK or MFG-CUS transactions, this means that the job was closed prior to any shipment or manufacturing
receipt.
If Standard costing was used and the Standard cost is Zero (0), a Mfg-VAR transaction will be created because the cost and the cost basis have a difference.
Charlie Smith
CRS Consulting Services
860-919-1708
Actually means there was NO shipment or receipt to inventory. As either of those will create the MFG-CUS or MFG-STK if done even after the job is closed.
@ckeathley - Does the QOH of inventory reflect the receipts?
I understand but the process was followed correctly. Received into inventory then closed. I had them redo the process to make sure but the full amount went to variance. I think that part number was setup as std costing but we use avg. Looking into that.
When looking at the transactions. It all goes to variance instead of following the parts. Exactly like the route if we did not receive these in before closing job. I think the costing method of S when the company is setup of avg is my culprit? Any thoughts on that?
It is definitely due to the cost method
The costs in WIP, minus the StdCost, are what end up in VAR. Since the Std Cost is zero. The entire cost goes to VAR.
To fix it:
Since you have just the one site, use the Part -> Detail sheet.
It might be disabled if you have QOH.
If that’s the case, then
FWIW - Making a part inactive, automatically sets the Cost Method to STD. Re-activating it, leaves it at STD. You have to manually set it to what you want (AVG, LAST, etc …)
