We are on 9.05 with Progress. All of our mfg parts are manufactured to stock then shipped to the customer. All parts, purchased and mfg are set to std cost.
We are seeing many parts with history and with job variances where the standard, average, and last cost are all the same. It’s as if the average and last cost are being updated by the Job Receipt to inventory costs. (which are standard)
I always assumed Epicor auto calculated average and last costs based on the actual Job costs at the time of the receipt to inventory, but that does not appear to be the case.
Anyone know why this is happening? Am I missing a setting or a function to update these average and last costs?
I ran into this quite some time ago. My testing concluded that when you are using Standard Costing, the Average and Last costs are actually the average of the Standard Costs and Last Standard cost. If you have a test environment, change the cost on a part and see if the Average and Last costs field change.
Any variances to standard are captured either as a MFG Variance or as PPV.
Thanks Rick. I also tested the latest version and even changed a sales Ofer to make direct and still the same functionality. Purchased parts at standard are the exception, they do update.
If there is zero QOH when a MFG-STK tran happens, does the AVG cost get updated to equal the cost of that job, or to the STD cost? (Assuming the cost of that job differed from the STD cost).
And if there was QOH, is the AVG cost including the value of QOH into the new AVG cost calc?
Hello Calvin,
With the current settings, in both V9 and latest V10, on mfg parts set to std cost, when a job has costs that are either higher or lower than the standard, the true average and last cost are not being updated by the actual job costs after the Job Receipt to Inventory receipt. (or when job is completed or closed)
Purchased parts set to std do work as expected. I was hoping there was a config setting I’m missing, but I’ve yet to find it. The job cost tech ref manual is unclear imho.
The cost going to inventory is the standard cost. This updates the other costs as well. The average would be different if you had stock at one cost and added stock at a newer cost. The actual cost of the job does not update any cost on
the part. All you get for the actual vs the Std is the MfgVar.
The blame is on me for assuming in Epicor, the average and last cost would be updated, even though the part is set to standard. I worked with another mfg product for a long time and it did update those values and we had a comparison report so you could periodically review your std vs avg vs last cost to see how closely they were tracking.
The average would be updated if the standard cost was different from the current stock cost and there was stock on hand. The last would be updated to the cost of the last inventory transaction (Standard).
Hello Charlie,
Yes, I agree, and that is a lack of functionality. If I create a mfg part, create a revision, make to stock, establish the std cost, then continually build it over time on many jobs, the average and last cost will always equal the standard.
What’s missing is the ability to measure the weighted average and the last cost back to the standard.
Thanks,
Unfortunately, you have review the MfgVar for that information as well as the Prod Dtl report.
That should be an automatic business process if the difference on the completed job is out of a specific range (such as outside of 90 to 110%) you should do a review to determine if the standard needs to be updated or there was a one time
variance.
I agree again Charlie. First thing I do is build a job variance dashboard for both closed or ready to be closed jobs so that they can review any out of line costs (comparing jobassmbly totals to partcost values). The dashboard flags anything over the user decided thresholds.
In our case, we wanted to quickly review the cost differences against several hundred finished good parts that are built on a regular basis.