Receipt Entry Generates ADJ-CST Transaction

Epicor ERP 10
1

Looking for a sanity check on my logic

In the screen cap below it appears that every PO reciept generates a ADJ-CST transaction. I would assume that this is because it is updating the “Last Cost” field in the part master. Is this the case?

Following up on that why is there a transaction qty tied to those transactions? When I look at a part we did a std cost roll on there is a 0 for transaction qty.

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2

Our does that when our AP Invoices are entered and they don’t exactly match the PO. Scroll over to the right and see the user that did it. If it is your AP person, that’s what’s happening. I would pull the supplier’s invoice for one of those POs and compare it to the Purchase Order.

3

@Camren360 Are you using Std. Costing Method? If yes, then the difference between PO Cost and Std. the Cost will be posted as ADJ-CST. If use MtlBurden., then also system posts ADJ-CST transaction. Regarding initial entries with zero qty, when u do Std. Cost rollup and posting or cost adjustment transaction, it will create ADJ-CST. If there is any difference between PO Cost and AP Invoice, then it will ADJ-PUR.

4

A cost method of type LAST will create these when the receipt on the PO doesn’t match the current cost on file.

And you’ll usually see multiple transactions. The first to adjust out the existing inventory, and the second to get the total value (not cost) correct.

Example

  • start with a QOH of 100 of a part with a Last Cost of 1.00. The value in inventory is $100.00.
  • a PO with a qty of 50 at $1.10 each is received
  • After the receipt there is now 150 at $1.10 each
  • using LAST means that the prior 100 pieces now need to be valued at $1.10. But that would be a sudden gain in inventory value of $10.00 (100 x ($1.10 - $1.00)). So that extra $10 needs to accounted somewhere.

Edit

Also happens on a receipt from manufacturing when the WIP cost differs from the cost on file

5

Thank you all for the input,

I see now that this part was still in our NPI/ECO process when it was received and didn’t have a std cost tied to it.