We have some long lead time purchased products that have many possible configurations. We stock the most popular models plus the components necessary to convert them to the non stocked models. When an out of stock model is sold we create a job to convert a stocked model into the one that we are short.
In our current system (we go live on Epicor in a couple of months) we can enter negative qtys in the BOM which makes it easy to transact the removed options for return to stock and maintain accurate job costs.
We tried entering the removed component in the job BOM at zero qty however the Job Receipt to salvage transaction gives us an error stating - Material Salvage Credit Cannot exceed Job Material Material Cost.
Appreciate any ideas on how best to manage the salvaged parts while maintaining accurate job costs.
Epicor does not allow negative items in a pre-defined BOM. You CAN delete the part from the job after the job gets created.
You probably can also look into the “Salvage” part number options within the BOM… with a salvage, you can tell the BOM that you will salvage an item off the BOM.
We’ve done some testing of the BOM salvage function and it does work with respect to tracking the quantity of recovered parts however the job cost is not automatically credited. We would have to do a job cost adjustment prior to closing the job. We do a lot of stock conversions and the associated salvage parts are quite expensive so this will have a material impact on COGS. Any other suggestions on how to handle this situation?