Job Costing PDF

Epicor ERP
Job Costing Course

10.0.700.2
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Job Costing Course Contents
Contents
Job Costing Course.................................................................................................................7
Before You Begin....................................................................................................................8
Audience.........................................................................................................................................................8
Prerequisites....................................................................................................................................................8
Environment Setup..........................................................................................................................................9
Workshop Constraints..............................................................................................................................9
Overview...............................................................................................................................11
Epicor ERP Accounting Basics...............................................................................................12
Manufacturing Business Cycles...........................................................................................13
Costing Methods...................................................................................................................14
Standard Job Costing.....................................................................................................................................16
FIFO Job Costing............................................................................................................................................16
FIFO Cost Layers.....................................................................................................................................17
Workshop - Use FIFO Costing.................................................................................................................18
Create a FIFO Part............................................................................................................................18
Adjust Quantities.............................................................................................................................19
Adjust Costs....................................................................................................................................19
View the Part Tracker......................................................................................................................20
Enter a Job......................................................................................................................................21
Add a FIFO Part to the Job...............................................................................................................21
Engineer, Schedule, and Release the Job..........................................................................................22
Issue Material to the Job..................................................................................................................22
Review the Production Detail Report................................................................................................23
Review the Part Tracker...................................................................................................................23
Resource Groups and Resources..........................................................................................24
Resource Group Maintenance........................................................................................................................24
Resource Group Related Details.....................................................................................................................24
Method of Manufacture.........................................................................................................................24
Operations..............................................................................................................................................25
Resource Group......................................................................................................................................25
Resource.................................................................................................................................................25
Group Capacity......................................................................................................................................26
Resource Types.......................................................................................................................................26
Labor and Burden Rates..........................................................................................................................26
Crew Size...............................................................................................................................................26
Burden Hours.........................................................................................................................................27
Backflush Default Employee....................................................................................................................28
Workshop - Create a Resource Group and Resources.....................................................................................28
Create a Resource Group........................................................................................................................28
Enter Costing Burden and Labor Rates....................................................................................................29
Epicor ERP | 10.0.700.2 3

Contents Job Costing Course
Enter Quoting Burden and Labor Rates ..................................................................................................29

Add a Resource......................................................................................................................................29
Add an Additional Resource....................................................................................................................30
Enter Burden and Labor Rates for the Second Resource...........................................................................30
Daily Job Costing Processing...............................................................................................31
Cost Adjustment............................................................................................................................................31
Workshop - Enter Values........................................................................................................................31
Enter Cost Values............................................................................................................................32
Modify the Primary Cost of a Part....................................................................................................32
Inventory/WIP Reconciliation Report...............................................................................................................33
Workshop - Review the Inventory/WIP Reconciliation Report...................................................................34
Part and Method Trackers..............................................................................................................................35
On Hand Sheets......................................................................................................................................35
General Sheets.......................................................................................................................................36
Workshop - Review the Part Tracker and the Method Tracker.................................................................37
Review Standard Cost Part Details...................................................................................................37
Review the Part Transaction History.................................................................................................37
Review Cost Values for Parts............................................................................................................37
Open a Part Revision with the Method Tracker.................................................................................38
Review the Method Tracker.............................................................................................................38
Costing Workbench.......................................................................................................................................38
Detail Sheet............................................................................................................................................39
Parts Pane.......................................................................................................................................40
Resource Pane.................................................................................................................................40
Actions Menu..................................................................................................................................40
Standard Costing and Cost Rollup..........................................................................................................41
Workshop - Create Standard Cost Values........................................................................................44
Create a Group........................................................................................................................44
Load Cost Details to Rollup.......................................................................................................45
View Active Details...................................................................................................................45
Rollup Costs.............................................................................................................................46
Review the Results of the Rollup...............................................................................................46
Review Labor and Burden Rates................................................................................................47
Rollup Costs.............................................................................................................................47
Review the Results of the Rollup...............................................................................................48
Review Labor and Burden Rates................................................................................................48
Refresh Cost Details.................................................................................................................49
Print the Cost Set Group..........................................................................................................49
Post the Cost Set Group...........................................................................................................50
View the Part Tracker...............................................................................................................50
Business Exceptions................................................................................................................................50
Job Costing Process.......................................................................................................................................51
Material and Labor Processing................................................................................................................51
Workshop - Create a Quote, Sales Order, and Job...........................................................................51
Create a Quote........................................................................................................................51
4 Epicor ERP | 10.0.700.2

Job Costing Course Contents
Add a Line Item to the Quote...................................................................................................52

Create a Sales Order.................................................................................................................52
Create a Job.............................................................................................................................53
Workshop - Create a Purchase Order...............................................................................................53
Create a Purchase Order...........................................................................................................53
Create a Line............................................................................................................................53
Approve the Purchase Order.....................................................................................................54
Workshop - Enter a PO Receipt........................................................................................................54
Workshop - Add Labor Transactions................................................................................................55
Add Labor Detail Transactions..................................................................................................55
Add Labor................................................................................................................................56
Workshop - Track a Job...................................................................................................................57
Review Material Transactions....................................................................................................57
Review Labor Transactions........................................................................................................57
Workshop - View and Edit the Labor Edit Report..............................................................................58
View the Labor Edit Report.......................................................................................................58
Edit Labor.................................................................................................................................58
Submit Labor Hours..................................................................................................................59
Review the Corrected Labor Edit Report....................................................................................59
Workshop - Review the Inventory/WIP Reconciliation Report............................................................59
Subcontract Shipments and Receipts.......................................................................................................60
Workshop - Create a Purchase Order for Subcontract Operation Material........................................61
Create a Subcontract Purchase Order Header...........................................................................61
Add a Line................................................................................................................................61
Workshop - View Planned Subcontractor Shipments........................................................................62
Workshop - Ship to a Subcontractor................................................................................................62
Create a Subcontractor Shipment.............................................................................................62
Create Lines.............................................................................................................................62
Workshop - Review the Subcontract Status Report...........................................................................63
Workshop - Receive Subcontract Operation Material........................................................................63
Enter a Packing Slip..................................................................................................................63
Mass Receive Material..............................................................................................................64
Workshop - Review the Inventory/WIP Reconciliation Report............................................................64
Mass Issues to Manufacturing.................................................................................................................65
Workshop - Mass Issue to Manufacturing........................................................................................65
Customer Shipment Entry.......................................................................................................................66
Workshop - Ship an Order and Review Transactions.........................................................................67
Create a Mass Shipment...........................................................................................................67
Review the Inventory/WIP Reconciliation Report........................................................................67
Review Job Transactions...........................................................................................................68
Review Material Transactions....................................................................................................68
Job Closing Process and Late Arriving Costs...................................................................................................68
Candidates.............................................................................................................................................69
Complete...............................................................................................................................................69
Job Completion Frequency......................................................................................................................69
Epicor ERP | 10.0.700.2 5

Contents Job Costing Course
Close......................................................................................................................................................70
Close vs. Complete.................................................................................................................................70
Standard Cost Job Closing Process..........................................................................................................70
Production Detail Report.........................................................................................................................70
Workshop - Review and Complete a Job.................................................................................................71
Review the Production Detail Report................................................................................................71
Complete and Close a Job...............................................................................................................71
Job Costing Reports.......................................................................................................................................72
Stock Status Report................................................................................................................................72
Work in Process Report...........................................................................................................................73
Inspection Pending and Open DMR Status Reports..................................................................................73
Bill of Material Cost Report.....................................................................................................................74
Material Transaction Detail Report..........................................................................................................74
Sales Gross Margin Report......................................................................................................................75
Capture COS/WIP Activity Process..................................................................................................................75
Workshop - Capture and Post Inventory Transactions..............................................................................76
Transaction Analysis.............................................................................................................77
T-Account Flow..............................................................................................................................................77
Purchasing Activity..................................................................................................................................77
T-Account Recap: Purchasing Activity......................................................................................................80
Inventory and WIP Activity......................................................................................................................81
T-Account Recap: Inventory and WIP Activity..........................................................................................84
Finished Goods and COS Activity............................................................................................................84
T-Account Recap: Finished Goods and COS Activity................................................................................86
Conclusion.............................................................................................................................87
Appendix...............................................................................................................................88
Manufacturing Environments and Strategies..................................................................................................88
The Make to Order Environment.............................................................................................................88
The Make to Order Manufacturing Strategy.....................................................................................92
General Ledger Concepts - Make to Order.......................................................................................93
The Make to Stock Environment.............................................................................................................95
The Make to Stock Manufacturing Strategy.....................................................................................95
General Ledger Concepts - Make to Stock.......................................................................................96
The Mixed Mode Manufacturing Environment........................................................................................97
The Mixed Mode Manufacturing Strategy........................................................................................97
Recommendations, Considerations, and Approaches.....................................................................................99
Approach 1: Resource Group Specific...................................................................................................100
Approach 2: Resource Specific..............................................................................................................101
Approach 3: Multiple Resource Groups or Resources............................................................................102
Approach 4: Multiple Resource Groups or Resources used with the Advanced Planning and Scheduling
Module...........................................................................................................................................103
6 Epicor ERP | 10.0.700.2

Job Costing Course Job Costing Course
Job Costing Course
This course reviews the Epicor application concept of job costing, as well as the reporting tools and setup steps
available for maintaining general ledger validity within your company. Topics of discussion include the general
ledger (GL) inventory interface, GL control setup and usage, and other job costing processes available within the
application.
This course is organized into seven sections:
1. Epicor ERP Accounting Basics
2. Manufacturing Business Cycles
3. Costing Methods
4. Resource Groups and Resources
5. Daily Job Costing Processes
6. Transaction Analysis
7. Specialized Job Costing Processes
The course's appendix includes a valuable tool known as the Epicor Inventory Transaction Hierarchy.
Upon successful completion of this course, you will be able to:
• Understand Epicor ERP accounting basics and manufacturing business cycles.
• Note the differences between manufacturing environment types.
• Evaluate and set up the process for costing jobs.
• Identify the components and calculations used to generate estimated costs.
• Identify different approaches for utilizing resource groups and resources.
• Explain how costing data is accumulated to determine at the final cost on each job record.
• Understand the Landed Cost processing.
• Analyze inventory transactions.
• Utilize Costing Workbench functionality.
• Understand the Epicor Inventory Transaction Hierarchy.
Epicor ERP | 10.0.700.2 7

Before You Begin Job Costing Course
Before You Begin
Read this topic for information you should know in order to successfully complete this course.
Audience
Specific audiences will benefit from this course.

• Cost Accountant
• CFO/Controller
• Engineer
Prerequisites
To complete the workshops in this course, the necessary modules must be licensed and operating in your training
environment. For more information on the modules available, contact your Epicor Customer Account Manager
at EpicorCAM@epicor.com. It is also important you understand the prerequisite knowledge contained in other
valuable courses.
• Navigation Course - This course introduces navigational aspects of the Epicor application's user interface.
Designed for a hands-on environment, general navigation principles and techniques available in two user
interface modes - Classic Menu and Modern Shell Menu. Workshops focus on each of these modes and
guide you through each navigational principle introduced.
• General Ledger - This course provides a clear perspective of the maintenance programs, concepts, processes,
and reporting tools you encounter as you work within the General Ledger (GL) module.
• System Flow Course - This course introduces a basic quote to cash scenario that includes the process from
the initial customer quote to final cash receipts and payment of supplier invoices. This course emphasizes the
series of processes that make up the quote to cash process by using a simple scenario to highlight various
transactions. Your organization may have more complex processing routines than those described in this
course.
• Financial Foundations Course - This course introduces you to the maintenance modules and programs in
the Epicor application that set the basis for the financial activities within your company.
• Job Management Course - This course describes the features and functionality of the Job Management
module. Job Management provides a comprehensive manufacturing control system designed for routing,
scheduling, costing, and tracking custom or repetitive parts produced for inventory or shipped to the customer
from the site floor.
8 Epicor ERP | 10.0.700.2

Job Costing Course Before You Begin
Environment Setup
The environment setup steps and potential workshop constraints must be reviewed in order to successfully
complete the workshops in this course.
Your Epicor training environment, in which the Epicor demonstration database is found, enables you to experience
Epicor functionality in action but does not affect data in your live, production environment.
The following steps must be taken to successfully complete the workshops in this course.
1. Verify the following or ask your system administrator to verify for you:
• Your Epicor training icon (or web address if you are using Epicor Web Access) points to your
Epicor training environment with the Epicor demonstration database installed. Do not complete
the course workshops in your live, production environment.
Note It is recommended that multiple Epicor demonstration databases are installed. Contact
Support or Systems Consulting for billable assistance.
• The Epicor demonstration database is at the same service pack and patch as the Epicor
application. Epicor's education team updates the Epicor demonstration database for each service pack
and patch. If your system administrator upgrades your Epicor application to a new service pack or patch,
he or she must also download the corresponding Epicor demonstration database from EPICweb > Support
> Epicor > Downloads and install it. If this is not performed, unexpected results can occur when completing
the course workshops.
• Your system administrator restored (refreshed) the Epicor demonstration database prior to
starting this course. The Epicor demonstration database comes standard with parts, customers, sales
orders, and so on, already defined. If the Epicor demonstration database is shared with multiple users
(that is, the database is located on a server and users access the same data, much like your live, production
environment) and is not periodically refreshed, unexpected results can occur. For example, if a course
workshop requires you to ship a sales order that came standard in the Epicor demonstration database,
but a different user already completed this workshop and the Epicor demonstration database was not
restored (refreshed), then you will not be able to ship the sales order. Epicor's education team has written
the course workshops to minimize situations like this from occurring, but Epicor cannot prevent users
from manipulating the data in your installation of the Epicor demonstration database.
2. Log in to the training environment using the credentials manager/manager. If you are logged into your
training environment as a different user, from the Options menu, select Change User.
3. From the Main menu, select the company Epicor Education (EPIC06).
4. From the Main menu, select the Main site.
Workshop Constraints
Below is a list of workshops in this course that can be performed only once in each instance of a restored (refreshed)
database. Where applicable, a detailed explanation of the workshop constraints is documented in the workshop
itself.
• Workshop - Enter Values
• Workshop - Create Standard Cost Values
• Workshop - Add Labor Transactions
Epicor ERP | 10.0.700.2 9

Before You Begin Job Costing Course
• Workshop - View and Edit the Labor Edit Report

• Workshop - Capture and Post Inventory Transactions
10 Epicor ERP | 10.0.700.2

Job Costing Course Overview
Overview
Job costing in the Epicor ERP application is a comprehensive and flexible process that requires a thorough
understanding of accounting concepts and the processes you use in the application.
Valuable information is covered throughout the Job Costing course. Highlights include:
• The Make to Order Process - This process involves the evaluation and setup of the processes associated
with costing jobs that are purely made to order.
• The Make to Stock Process - This process involves standard cost items and the variance analysis of items
that are made to stock.
• Mixed Mode Manufacturing - This is a combination of the Make to Order and Make to Stock processes.
• Resource Groups and Resources - These are areas within a company where work is performed or an
indication of what is required to complete the work. A resource can be a person, place, or object used during
production. Each resource group must have at least one resource in order to be active.
• The Costing Workbench - This tool is used to update standard costs, rollup costs of manufactured items,
identify conversion errors, update resource and resource group rates, and update the standard cost of purchased
parts with the average or last cost.
Key Concepts
• The Epicor application offers six methods for costing parts: Average, First-In-First-Out (FIFO), Last, Lot Average,
Lot FIFO, and Standard.
• There are three main manufacturing business cycles that relate to job costing strategies. The manufacturing
cycles are: Manufacturing, Inventory, and Cost of Sales (COS).
• The Non-Stock option on a part record is a major element of the application logic as it controls the default
transactional flow for each part.
• Non-quantity bearing parts have no impact on the physical inventory; receiving a non-quantity bearing part
does create an inventory transaction (PUR-UKN or purchase to unknown) which affects the general ledger as
soon as the Capture COS/WIP Activity process is performed.
Epicor ERP | 10.0.700.2 11

Epicor ERP Accounting Basics Job Costing Course
Epicor ERP Accounting Basics
Job costing in the Epicor application involves reporting profitability, which is the amount a company earns (revenue)
minus the expenses necessary to earn that revenue. Job costing focuses on determining a manufacturer's cost
per unit to value inventory and the cost of goods sold.
Key Concepts of Job Costing in Epicor ERP

• All transactions in an inventory-interfaced environment follow a hierarchical flow of pre-defined general ledger
(GL) controls.
• Information flows to the GL based on the company-specific setup of GL control types and codes which relate
to maintenance program parameters, company configuration, and business entity transactions throughout
the application. For more information on how to set up and understand GL control functionality, refer to the
General Ledger course or the Application Help.
• GL book setup and fiscal calendar definition are vital steps in the implementation process and should reflect
a company's job costing processes. Some processes include departmentalized labor absorption and divisionalized
inventory.
• You can use part classes and product groups to group together inventory items or jobs to review costing and
transactional flow.
• Use the Costing Workbench to update and rollup standard costs. When Average, Last, or First-In-First-Out
(FIFO) costs of a purchased item are pulled into the workbench, the costs become standard and can be used
in cost rollup.
• Job, inventory, and labor transactions occur in the PartTran and Labor tables and are reported on the
Inventory/WIP Reconciliation Report. Perform the Capture COS/WIP Activity process to commit these
transactions to the GL.
• The Inventory, COS, and WIP GL control types define the account contexts required to process many of the
job, inventory, and labor transactions you perform in the Epicor application. In an inventory interfaced
environment, a GL control code must be defined for this GL control type and added to each company's
configuration.
• Once a transaction occurs that impacts the GL, it cannot be deleted or changed.
Some examples of transactions include:
• Order shipments that have been invoiced
• Purchase order (PO) receipts to inspection
• PO receipt matches to accounts payable (AP) invoices
• Labor time and attendance sent to payroll
• Inventory and Cost of Sales (COS) transactions after the Capture COS/WIP Activity has run
• Transaction dates default to the system date of the application. This date, which is typically the current date,
determines the fiscal period to which journals post. If necessary, override transaction dates prior to posting.
You can override transaction dates in prior periods unless the company's posting rules are customized to
restrict this ability in GL Transaction Type Maintenance. For more information on how to customize posting
rules, refer to the Posting Engine course or the Application Help.
• Data entry personnel typically are not given security rights to view GL account numbers as these numbers are
often confidential; Accounts Payable and Purchasing personnel are sometimes the exception.
12 Epicor ERP | 10.0.700.2

Job Costing Course Manufacturing Business Cycles
Manufacturing Business Cycles
There are three main manufacturing business cycles that relate to the Epicor application's manufacturing strategies.
This course examines the relationship between these cycles and strategies.
Epicor's manufacturing business cycles include:
• Manufacturing
• Inventory
• Cost of Sales
Accurate valuation of component and manufactured parts affects the sales gross margin and ultimately, the
company's net profit and loss. As quote prices and sale prices are often based on estimates, accurate product
cost estimates are the cornerstone of profits for any business. This is particularly true in a standard cost environment
where variances become a manufacturing expense. (Standard cost environments are discussed in more detail
later in this course).
The graphic below provides a glance at a Manufacturing business cycle.
The circled portion at the bottom of the graphic represents the beginning of the Manufacturing, Inventory and
Cost of Sales Cycle. Capital (money) is earned as goods are sold and paid for during the Sales and Collection
Cycle. After sales are made and dollars are collected, the general ledger (GL) is updated with the company's net
profits.
The GL is where the other cycles begin. Both the Labor Collection and Payroll Cycle and the Capital Acquisition
and Repayment Cycle directly link to the company's net losses. You must use the money you earn from your
company's Sales and Collection Cycle to keep the business running. Employees are paid, parts are purchased,
and so on.
Ultimately, the Payroll and Payment Cycles lead back to the Manufacturing, Inventory, and Cost of Sales Cycle,
as no business can remain in operation without labor and parts with which to work.
Epicor ERP | 10.0.700.2 13

Costing Methods Job Costing Course
Costing Methods
The Epicor application offers a variety of ways to determine the cost of a part or product and provides the flexibility
to define how costs are rolled. Define costs in Part Maintenance, Company Configuration, and the Costing
Workbench.
Costing Methods
• Average - This method calculates the weighted average of all receipt costs for all parts in this cost group.
Costs recalculate every time a receipt transaction is processed. The application calculates Average cost for all
parts regardless of their default costing method.
• FIFO - This is an abbreviation for First-In-First-Out. This method assumes the next quantity to issue or ship
from stock is the oldest quantity stored within the warehouse. As long as quantity remains from the original
received quantity, the application uses this cost value until the entire quantity from the original receipt is
consumed.
• Last - This method calculates the most recent receipt cost for parts within this group.
• Lot Average - This method calculates the average cost of all parts in a lot. This is the total cost, divided by
the total quantity, for all parts in a lot.
• Lot FIFO - This method determines the cost of all parts in a lot using the FIFO costing method.
• Standard - This method calculates a cost baseline for this part. Use the Costing Workbench to define standard
costs for each part cost group and to update those costs when necessary.
• Costing Method - This default option is only available in the Costing Workbench. Select this option to use
the costing method defined on the part record. This option can also pull in the Lot Average and Lot FIFO
costing methods which are tracking versions of the Average and FIFO costing methods.
If a standard cost part is shipped via Customer Shipment Entry, the shipment transaction from WIP (MFG-CUS)
captures the standard unit cost for the part rather than the actual costs from the job. When there are variances
between the part's standard cost and the actual costs of the job, the application creates a manufacturing variance
transaction (MFG-VAR) for the remaining WIP balances.
Company Configuration
In the Company Configuration on the Modules > All Modules > General sheet, in the Costing Method field.
Select the default method to calculate the cost of parts issued or shipped within the company. The application
uses this costing method when you create new parts, but you can override it in Part Maintenance.
Menu Path
Navigate to this program from the Main Menu:
• System Setup > Company/Site Maintenance > Company Configuration
Part Maintenance
Use the Part > Detail sheet in Part Maintenance to override the costing method established in Company
Configuration. Select a different method in the Costing Method field on the part's Part > sites > Detail sheet
to override the part level costing method.
Note The costing method you select on the part/site record determines which calculation the application
uses when it retrieves a unit cost (the usage cost of one part) for a part quantity.
14 Epicor ERP | 10.0.700.2

Job Costing Course Costing Methods
Menu Path
• Material Management > Inventory Management > Setup > Part
• Material Management > Purchase Contracts Management > Setup > Part
• Material Management > Purchase Management > Setup > Part
• Material Management > Supplier Relationship Management > Setup > Part
• Production Management > Engineering > Setup > Part
• Production Management > Job Management > Setup > Part
• Production Management > Material Requirements Planning > Setup > Part
• Production Management > Quality Assurance > Setup > Part
• Sales Management > Configurator Management > Setup > Part
• Sales Management > Demand Management > Setup > Part
• Sales Management > Order Management > Setup > Part
• Service Management > Field Service > Setup > Part
For CRM users, the Main Menu appears as:
• Customer Relationship Management > Configurator Management > Setup > Part
• Customer Relationship Management > Order Management > Setup > Part
Costing Workbench
Select a costing method on the Group > Details sheet in the Costing Workbench to determine what values to
calculate for the group. Costs are calculated according to the costing method you select.
• If the costing method is Average, Lot Average, or Last, and the part is a material requirement, the application
rolls up part record costs from the cost group that recently generated costs or from the cost set linked to the
site.
• If the costing method is standard, the application rolls up costs from the Bill of Materials (BOM) of this part.
• If the costing method is FIFO or Lot FIFO, the rollup calculation uses the values from the current cost queue
record (the current quantity).
Menu Path
• Production Management > Engineering > General Operations > Costing Workbench
Epicor ERP | 10.0.700.2 15

Standard Job Costing
Standard job costing verifies costs on a standard cost item. Use standard job costing to identify the planned costs
of producing an item. Standard job costing also moves expenses such as labor and burden to Cost of Sales (COS).
Differences between planned costs become manufacturing variances which you can review. The same is true for
purchased items.
You can attribute a variance in a standard purchase cost to suppliers, buyers, or accounts payable (AP) invoice
price differences. Variance details can help locate price fluctuations.
Use the standard costing method to define a baseline value for the part costs. This baseline value does not change
via transactions against this part. The standard cost is used on customer shipments, and the MFG-CUS transaction
(shipment of goods from stock to a customer or from manufacturing to a customer) captures the standard cost
for the part rather than the actual cost from the job.
As actual costs are calculated at the time of receipt, the difference between actual and standard costs are tracked
using the GL control code selected on the product group. A MFG-VAR transaction (manufacturing variance) is
also created for the remaining Work In Process (WIP) cost balances.
When a variance between two costs is too great, consider updating the standard cost on the part record to more
accurately reflect actual costs. Update standard costs in the Costing Workbench.
Use the Costing Workbench to retrieve current estimated costs from job methods. Modify costs to better reflect
the current situation within the manufacturing process. Post the updated costs to the part records. Each Part/site
detail uses the updated standard costs; these are therefore the amounts used when a customer order ships.
FIFO Job Costing
The First-In-First-Out (FIFO) costing method is an accurate way to calculate the cost of quantities in inventory.
This method is appropriate when you produce different batches of similar products. It assumes the next quantity
to issue or ship from stock is the oldest quantity stored in the warehouse. The cost of this quantity at the time it
was received is used as the cost of the issued or shipped quantity. As long as quantity remains from the original
received quantity, the Epicor application uses this cost value until the entire quantity is consumed.
The FIFO Costing Method

The FIFO costing method creates cost queue records to track each price on the date the part quantity is received.
As part quantities are issued to production or shipped to customers, the oldest cost queue record is consumed
first. When a cost queue record is reduced to a zero quantity, it is deactivated. At this point, quantity from the
next cost queue record is consumed, using the cost value generated when this queue record was received.
The FIFO costing method generates accurate tracking for audit purposes. Cost queue records are deactivated,
not deleted; this ensures an accurate audit trail. Likewise, when a transaction requires two or more cost queue
records, the Epicor application generates separate part transactions for each cost queue record. If a part quantity
is not consumed during production and is returned to inventory, the cost for this quantity is the average of all
quantities of that part issued to that job. This logic is used for all inventory adjustments. You can apply price
changes to a quantity still available within a cost queue record. These price variances post to the Inventory GL
account. When you need a price variance for issued quantities, this variance posts to the Purchase Price Variance
GL account.
Under the FIFO costing method, the application tracks the actual part cost at the quantity layers for the item and
costs a sale using the oldest costs. Perishable goods with a date stamp see the greatest benefit from this costing
method.
16 Epicor ERP | 10.0.700.2

FIFO Costing Key Points

Key points of FIFO costing include the following:
1. FIFO costing is per cost ID, not per warehouse or site.

Tip You can assign cost IDs to one or more sites (same as for average, last, and standard).
2. Lot FIFO determines the cost of all parts in a lot that uses the FIFO costing method.
3. A FIFO average is calculated for inventory adjustments.
4. Each FIFO cost record is linked to a part transaction.
5. A reduction of purchase price variances occurs when you use FIFO costing.
• You can apply price variances to the available quantity in the cost layer; these variances post to the
inventory GL account.
• Price variances for issued quantities post to the Purchase Price Variance GL account.
6. FIFO costing is not the same as FIFO inventory management.
7. If FIFO is selected on a part/site record, you cannot select Average for another part/site within the same cost
set and vice versa.
FIFO Rollup Process

Use the Costing Workbench to determine the standard unit costs or internal transfer prices of manufactured
parts. The FIFO rollup process uses the current FIFO cost queue record as the unit cost. If there are no cost queue
records, the average unit cost is used. If the average unit cost is zero, the last unit cost is used.
FIFO Cost Layers
View part costs per date, segment, and sub-segment in the Part Tracker. These details are known as FIFO Cost
Layers.
Sometimes parts are ordered and no quote is provided. The best known price is entered on the order in Purchase
Order Entry. Once the invoice arrives, it displays the correct price, which means you must adjust the price.
Throughout the history of the part, several factors can influence a price change (cost/manufacturing variance or
cost/purchase variance) for a part.
In the Part Tracker, on the General > Costs > FIFO sheet, view details of these changes by segment, sub segment,
quantity, and price. The application tracks the actual cost/quantity layers for each FIFO costed item and costs
issues and sales using the oldest part cost.
FIFO presumes that during consumption, the next item issued or shipped is the oldest of that part in the warehouse.
FIFO queue records are created and stacked chronologically. They are never deleted but instead are deactivated
upon consumption.
Note If you select the Enable FIFO Layers check box for a specific site in site Cost Maintenance on the
Detail sheet, it enables FIFO cost (layer) as secondary costs for non-FIFO costed parts. Any issue or receipt
of the part consumes or creates PartFIFOCost records to reflect the movement of FIFO quantities and cost,
in the same manner in which the Epicor application updates/consumes FIFO costed parts.
The same validations apply to non-FIFO parts when issuing/consuming quantities. The Epicor application
prevents the FIFO costs/quantities from going negative. You still receive customary FIFO negative quantity
errors when the FIFO layer is enabled; these stop you from continuing to process these types.
Epicor ERP | 10.0.700.2 17

Menu Path: Material Management > Purchase Management > General Operations > Part Tracker
Workshop - Use FIFO Costing
In this workshop, create a FIFO costed part, post transactions against that part, create a job, issue your FIFO part
as material to that job, review the actual cost of the materials issued, and track the FIFO costing layers for the
part.
The following table displays the data and calculations this workshop uses:
Date Sequence Quantity Cost Extended Cost

09/01/2010 1 4 $7 $28
09/01/2010 2 6 $7 $42
12/01/2010 1 10 $6 $60
01/01/2011 1 10 $5 $50
Total: 30 $180
Logic
• FIFO Average Cost: ((4+6) x $7) + (10 x $6) + (10 x $5)) / 30 =
$6
• Weighted Average Cost: $180 / 30 = $6
Important The dates for this workshop are in the MM/DD/YYYY format. Modify dates to meet your date
format.
Create a FIFO Part

Navigate to Part Maintenance.
Menu Path: Material Management > Inventory Management > Setup > Part
1. From the New menu, select New Part.
2. A dialog box displays asking if you want to create a new part. Click Yes.
3. In the Part field, enter XXX-FIFO (where XXX are your initials) and press Tab.
4. In the Description field, enter FIFO Part for XXX (where XXX are your initials).
5. In the Type field, verify Purchased displays.
6. In the Class field, select Purchased Materials.
7. In the Default Site Parameters pane, in the Costing Method field, select FIFO.
8. Click Save and exit Part Maintenance.
18 Epicor ERP | 10.0.700.2

Adjust Quantities
Navigate to Quantity Adjustments.
Menu Path: Material Management > Inventory Management > General Operations > Quantity Adjustment
2. In the Date field, select 09/01/2010.
3. Click the Bin button.

The Warehouse Bin Search window displays.
4. Select the Display All Bins check box and click Search.
5. Select Bin 01-01-01 and click OK.

The Warehouse Bin Search window closes.
6. In the Quantity field, enter 4
7. In the Reason, field select Add New Part.
8. Click Adjust.
9. Enter three additional quantity adjustments using the data in the table below.
Note Click Adjust after you enter each adjustment to submit the transaction.
Field Data 1 Data 2 Data 3

Date 09/01/2010 12/01/2010 01/01/2011
Bin 01-01-01 01-01-01 01-01-01
Quantity 6 10 10
Reason Add New Part Add New Part Add New Part
10. Exit Quantity Adjustment.
Adjust Costs
Navigate to Cost Adjustment.
Menu Path: Material Management > Inventory Management > General Operations > Cost Adjustment
1. Click New.
3. Click the FIFO Date/Seq/Sub button.
4. In the Part FIFO Cost Search window, click Search.
5. Double-click the record line for FIFO Date 09/01/2010 and Seq 1.
Epicor ERP | 10.0.700.2 19

6. In the FIFO column, in the Unit Material row, enter 7.
7. In the Reason field, select Add New Part.
8. Click Save.
9. Use steps 1-8 as a guide to enter three additional cost adjustments using the data in the table below.
Important Click Save after you enter each adjustment to submit the transaction and click New to
start the next adjustment entry.
Field Data 1 Data 2 Data 3

Part XXX-FIFO XXX-FIFO XXX-FIFO
FIFO Date/Seq/Sub 09/01/2010, 2, 0 12/01/2010, 1, 0 01/01/2011, 1, 0
FIFO column's Unit Material 7 6 5
Reason Add New Part Add New Part Add New Part
10. In the Average/Lot column, the Unit Material field now displays 6, which is the FIFO Average Cost.
11. Exit Cost Adjustment.
View the Part Tracker

Navigate to the Part Tracker.
Menu Path: Material Management > Inventory Management > General Operations > Part Tracker
2. Navigate to the General > Costs > FIFO sheet.
3. Click Retrieve to view the active FIFO costs you entered in the workshop task Adjust Costs.
Record the FIFO Dates, Seq numbers, On Hand quantities, and Mtl Unit Costs for each Seq. in the following
table:
Number FIFO Date Seq On Hand Mtl Unit Cost

1
2
3
4
Tip You can also right-click the grid; from the context menu, select Copy to Excel. The grid then
® ®
displays in Microsoft Excel ; delete the columns you do not need.
4. Exit the Part Tracker.
20 Epicor ERP | 10.0.700.2

Enter a Job
Navigate to Job Entry.
Menu Path: Production Management > Job Management > General Operations > Job Entry
1. From the New menu, select New Job.

The New Job Number window displays.
2. Click Next Job.
3. From the New Job field, record the job number__________.
4. Click OK.
The New Job Number window closes.
5. In the Part field, enter DSS-1060 and press Tab.
6. In the Req By field, select the last day of the current month.
7. From the New menu, select New Demand Link > Make To Stock.
On the bottom half of the Job sheet, the Make To Stock > Detail sheet displays.
8. In the Quantity field, enter 1.
9. From the Actions menu, select Job > Get Details.

The Get Details window displays for your job number.
10. If the Warning message displays, click Yes.
11. In the Part field, verify DSS-1060 displays.
12. Click OK.

The Get Details window closes.
Add a FIFO Part to the Job
1. In the tree view, right-click Materials and select Add Material.

The Job Details > Materials > Detail sheet displays.
2. In the Part/Rev field, enter XXX-FIFO (where XXX are your initials).
3. In the Qty/Parent field, enter 5.
4. Click Save.
In the tree view, your FIFO part displays as Mtl: 40.
Epicor ERP | 10.0.700.2 21

Engineer, Schedule, and Release the Job
1. Navigate to the Job sheet.
2. Select the Engineered check box.

The Engineered indicator displays.
3. From the Actions menu, select Schedule > Job Scheduling.

The Schedule Job window displays.
4. Accept all defaults and click OK.

The Schedule Job window closes and the job is now scheduled.
5. Select the Released check box.

The Released indicator displays.
6. Click Save.
7. If a Warning message displays, click Yes.
8. Exit Job Entry.
Issue Material to the Job

Navigate to Issue Material.
Menu Path: Material Management > Inventory Management > General Operations > Issue Material
1. In the Job field, enter the job number created in the workshop task Enter a Job.
2. In the Mtl field, select 40.
3. In the Qty field, enter 5.
4. Navigate to the List sheet.
5. In the To Warehouse field, select Main.
6. In the To Bin field, enter 01-01-01.
7. Navigate to the Detail sheet.
8. Click OK.
9. Exit Issue Material.
22 Epicor ERP | 10.0.700.2

Review the Production Detail Report

Navigate to the Production Detail Report.
Menu Path: Production Management > Job Management > Reports > Production Detail
1. Navigate to the Filter > Jobs sheet.
2. Click New.
3. In the Job field, enter the job you created in the workshop task Enter a Job and press Tab.
4. Now click the Selection sheet.
5. Verify the Report Style drop-down list displays the Standard - SSRS option.
6. Click Print Preview.
7. Review the Job Production Detail Report.

On the last page of the report, verify the Actual Cost for your FIFO part (Mtl 40) is 35.00.
8. Exit the Production Detail Report.
Review the Part Tracker

Menu Path: Production Management > Job Management > General Operations > Part Tracker
2. Navigate to the General > Costs > FIFO sheet.
3. Click the Retrieve button to view the cost layers.

Note The first FIFO date is 09/01/2010. The material for the job was taken from this sequence. The
line for FIFO Date 09/01/2010, Seq 1 does not display. The On Hand field for FIFO Date 09/01/2010,
Seq 2 displays 5.00 instead of 6.00. This is because sequence 1 had an on hand quantity of 4.00, but
the material issued in the workshop task Issue Material to the Job called for a quantity of 5.00. The
Epicor application uses a quantity of 1.00 with the FIFO Date 09/01/2010, Seq 2 once all the quantity
from FIFO Date 09/01/2010, Seq 1 is used.
4. Navigate to the General > Costs > Detail sheet.

Note The new Average Mtl Cost is 5.80. This is because a quantity of 5 was issued from inventory
to the job, so the FIFO Average Cost recalculated from $6.00 to $5.80. This recalculation occurred
because the Extended Quantity is now 25 instead of 30, and the Extended Cost is $150.00 instead
of $180.00.
FIFO Average Cost: ((0+5) x $7 + 10 x $6 + 10 x $5) / 30 = $5.80
5. Review the table you recorded in the workshop task View the Part Tracker to see the difference noted
above.
Epicor ERP | 10.0.700.2 23

Resource Groups and Resources Job Costing Course
Resource Groups and Resources
This section of the course discusses the importance of resource groups and resources in relation to the job costing
process. It also includes recommendations, considerations, and approaches for usage.
Resource Group Maintenance
A resource group is an area within a department where work is done or an indication of what is required to do
the work. It can be a person, place, or object used during production. Each resource group must have at least
one resource. Use Resource Group Maintenance to set up resource groups and resources to assign to operations.
Resource groups and resources carry labor and labor burden cost estimates. If no labor and burden values are
defined on a resource, the values defined on the related resource group are used. Scheduling and costing
information defined on a resource supersedes information defined on the resource group to which it is attached.
Resource group records and resource records can reference an operation which defaults during the creation of
a method.
Menu Path
• Production Management > Engineering > Setup > Resource Group
• Production Management > Job Management > Setup > Resource Group
• Production Management > Scheduling > Setup > Resource Group
• Sales Management > Configurator Management > Setup > Resource Group
• Service Management > Expense Management > Setup > Resource Group
• Service Management > Field Service > Setup > Resource Group
• Service Management > Maintenance Management > Setup > Resource Group
• Service Management > Project Management > Setup > Resource Group
• Service Management > Time Management > Setup > Resource Group
• Customer Relationship Management > Configurator Management > Setup > Resource Group
Resource Group Related Details
Resources and their groups house information used to calculate costs and schedule operations. This section of
the course explains the details and logic defined on each resource and group.
Method of Manufacture
A Method of Manufacture (MOM) describes how a company manufactures products.

The Bill of Materials (BOM) and routing are combined into a single entity referred to as an MOM. An MOM is a
compilation of operations and materials.
24 Epicor ERP | 10.0.700.2

Job Costing Course Resource Groups and Resources
MOMs are created on part, job, and quote records. Use the Engineering Workbench to create a part method.
Create a job method in Job Entry. Design a quote method in Opportunity/Quote Entry. You can define each
method as a template for a part that can then be pulled into other job, quote, or part records. This ensures
consistent creation methods you can reuse and modify.
The Costing Workbench (discussed in more detail later in this course) uses the values defined in a method to
arrive at an updated standard cost value on each standard cost part. It does this by rolling up the costs defined
for each level in the method. By creating thorough MOMs, manufacturing processes evolve and methods are
updated. Updates ensure estimated production costs remain an accurate source of costing information.
Operations
Operations define how a part is made or what kind of labor is required for a particular job activity. They are the
sequence of steps required on a MOM to make each part.
You can define an operation as an inside operation for planned and actual labor or a subcontract operation to
track the movement of parts associated with outside services.
Resource group records and resource records can reference operations which then default in when you create
a MOM. Resource groups and resources become the operation details within a MOM operation. It is important
to note that you can define two operation details on a single operation. If a company needs to schedule specific
resources, an operation can contain one or two resources, one of which is required to be the Primary Scheduling
Resource. This can be either a resource group or a resource and it becomes the primary scheduling resource
when defined as a Scheduling Resource on the operation record.
Resource Group
A resource group's purpose is to define default scheduling and costing parameters for the group of resources it
hosts.
Resource groups are most commonly used to net together similar pieces of equipment or similar skill sets; you
can also use them to define the equipment or skills within a physical location in a facility. Resource groups are
often described as the location where an activity takes place.
You must define at least one resource for each resource group. If one is not defined, the resource group is
automatically marked inactive.
Resource
A resource is a subset of a resource group.

You must set up at least one resource for each resource group. Resources can be people, places, or objects used
during production.
Resource examples:
• An employee job title or skill set (apprentice, skilled, cutter, setter)
• A physical location within a facility (assembly bench, milling area)
• A specific machine in a resource group (shear, milling machine, punch press)
• A specific tool, fixture, or gauge used during production (specialized saw, jigsaw, pressure gauge)
Epicor ERP | 10.0.700.2 25

Group Capacity
A resource group can have either finite or infinite capacity.

• Finite Capacity - A resource group that has a certain number of machines working for a certain number of
hours in a day, and job operations cannot exceed this capacity.
• Infinite Capacity - A resource group that has no capacity constraints. In this situation, the application
schedules jobs at the resource group level as if its capacity is unlimited.
Resource Types
You can use resource types to classify resources for custom reporting purposes.
Use Resource Type Maintenance to create resource type codes you can assign to resources in Resource Group
Maintenance.
Labor and Burden Rates
Define separate Labor and Burden rates for Costing and Quoting purposes.
Costing Labor and Burden Rates

You can define different labor and burden rates for production labor and setup labor. It is possible that the
individuals who complete the setup operations are more skilled than the production personnel. You can define
burden (overhead) rates as a flat rate per hour charged or a percent of labor dollars.
You can define labor and burden rates on both the resource group and the resource. If no labor or burden rate
is defined on the resource and the Use Resource Group Values check box is selected for the resource, the rates
defined on the resource group are automatically used.
Quoting Labor and Burden Rates

You can define different rates for production and setup for quoting purposes. It may be a company's practice to
quote labor slightly higher (or lower) to take into account variances in actual labor dollars incurred.
Opportunity/Quote Entry has Print Worksheet Action menu option. When selected, this option generates a
worksheet of estimated costs you can use to arrive at a sales price. If no quote rates are specified, production
labor rates are used on the Quote Worksheet.
You can override labor and burden rates during job entry which affects how the Production Detail report calculates
estimated labor.
Crew Size
You can assign a crew size to a resource group.

When this resource group is used on an operation in a method, the rollup assumes a labor rate based on the
crew size. The assumption is the crew will all report time against the same job.
26 Epicor ERP | 10.0.700.2

Burden Hours
Specify burden rate calculation options.
Split Burden
The Split Burden check box, available in Resource Group Maintenance on the Detail sheet, controls burden hour
distribution during direct labor entry. When an employee works on more than one job at a time, you can divide
the associated burden amongst the jobs based on the resource group parameters. This is also true when more
than one employee works on the same job, at the same time. Select the Split Burden check box to review these
costs separately on the Production Detail Report, a key report for reviewing your total burden expenses.
Example Five employees each charge one hour of labor to a job. If the Split Burden check box is clear,
five hours of burden are charged to the job. If the check box is selected, one hour of burden is charged to
the job split amongst each of the five employees.
Burden = Labor
For some operations, you may always want burden hours to equal labor hours. The Burden = Labor check box,
also available in Resource Group Maintenance on the Detail sheet, indicates that the number of burden hours
should be the same as the number of labor hours entered against the current resource group.
Example A user clocks into four jobs concurrently for eight hours. If the Burden = Labor check box is
clear, two hours of labor (labor automatically divides equally amongst the four jobs) and eight hours of
burden are applied to the job. If the Burden = Labor check box is selected, two hours of burden are applied
to each job.
Use Estimates
Select the Use Estimates check box, available in Resource Group Maintenance on the Detail sheet, if the current
resource group typically performs multiple operations at the same time. Selecting the Use Estimates check box
allows the application to proportionally divide labor based on an operation's estimated production labor rather
than simply dividing labor between two or more operations. The application can then more accurately reflect
the time necessary to complete each operation.
Example An employee is concurrently clocked into four operations for eight hours. If the Use Estimates
check box is clear, each job is charged two hours of labor; however, estimated labor can differ significantly
among the four operations which can lead to over, or under, costed jobs. If the check box is selected,
actual labor distributes to each operation proportionate to the amount of estimated labor.
The Use Estimates option can also function in tandem with the Burden = Labor option. If the Burden = Labor
check box is clear, the total burden amount is applied to each operation. If both check boxes are selected, both
labor and burden are proportionately distributed.
Example An employee is concurrently clocked into two operations using the same resource group. This
resource group has both the Use Estimates option and the Burden = Labor option selected. The first
operation takes 10 estimated production/setup hours. The second operation takes five estimated
production/setup hours. The employee clocks into both operations for a total of six hours. Each operation
produces one piece.
The calculation is: [Op 1: Est. 10 hours total production / 1 pc job qty = Est. 10 hrs per pc]
[Op 2: Est. 5 hours total production / 1 pc job qty = Est. 5 hrs per pc. 10 hrs to make 1 pc on Op 1 + 5 hrs to
make 1 pc on Op 2 = 15. Op 1 = Act. 6 hrs x (Est. 10 hrs @ Op 1 / 15 total Est. hrs) = 4 hours. Op 2 = Act. 6 hrs
x (Est. 5 hrs @ Op 2 / 15 total Est. hrs) = 2 hours]
Epicor ERP | 10.0.700.2 27

In this example, Operation (Op) 1 should have four hours of labor and burden applied, and Op 2 should have
two hours of labor and burden applied.
If an employee is clocked into two operations in different resource groups and one resource group does not have
the Use Estimates check box selected, the application still considers the estimate when it applies labor to each
operation.
Backflush Default Employee
Select the employee assigned to this resource group to backflush labor.

When labor detail is created against the operation that follows the backflush operation(s), the labor rate for the
employee specified is used on the backflushed operation along with the burden rate from the resource group.
The resource group ID displays in the name field on the Job Tracker's Job Details > Operations > Labor Transactions
sheet.
If this field is left blank, the labor rate and burden rate from the resource group or resource are used on the
backflushed operation and the employee name from the manually entered backflush transaction displays in the
Job Tracker's name field. This can be confusing as the rate is no longer associated directly with the name.
Workshop - Create a Resource Group and Resources
In this workshop, create a resource group with two resources - one that uses the group's values and one that
does not use the group values. Enter costing and quoting burden rates, as well as costing and quoting labor
rates.
Create a Resource Group

Navigate to Resource Group Maintenance.
Menu Path: Production Management > Job Management > Setup > Resource Group
1. From the New menu, select New Resource Group.
2. Enter or select the following information:
Field Data
Resource Group XXXAsbly (where XXX are your initials)
Description XXX Assembly Green Crew (where XXX are your initials)
Department Assembly Department
Input Warehouse Main
In Bin 01-01-01
3. In the Burden Hours pane, verify the Split Burden check box is selected.
4. Click Save.
28 Epicor ERP | 10.0.700.2

Enter Costing Burden and Labor Rates
1. In the Costing Burden Rates pane, in the Production field, enter 50.00.
2. In the Setup field, enter 50.00.
3. Verify the Flat option is selected.
4. In the Costing Labor Rates pane, in the Production field, enter 15.00.

In this example, the setup labor rate is $10.00 more than the production labor rate. The assumption can be
made that an employee who enters labor against a setup operation that uses this resource group is valued
higher than one who enters labor against a production operation that uses this resource group.
6. Click Save.
Enter Quoting Burden and Labor Rates
1. In the Quoting Burden Rates pane, in the Production field, enter 50.00.
3. In the Quoting Labor Rates pane, in the Production field, enter 15.00.
5. Click Save.
Add a Resource
Add a resource that uses the costing values of the group you just created.
1. From the New menu, select New Resource.

The Resources > Detail sheet displays.
Field Data
Resource XXXGRN1 (where XXX are your initials)
Description XXX Assembly Green Crew 1 (where XXX are your initials)
In Bin 01-01-01
3. Verify the Use Resource Group Values check box is selected in the Costing Burden Rates pane, the
Costing Labor Rates pane, and the Scheduling pane.
4. Accept all other defaults.
Epicor ERP | 10.0.700.2 29

5. Click Save.
6. If the capacity change warning message displays, click OK.
Add an Additional Resource

Add another resource to the same resource group. This resource will not use the costing values of the group.
1. From the New menu, select New Resource.

The Resources > Details sheet displays.
Field Data
Resource XXXGRN2 (where XXX are your initials)
Description XXX Assembly Green Crew 2 (where XXX are your initials)
In Bin 01-01-01
3. Click Save.
Enter Burden and Labor Rates for the Second Resource
1. In the Costing Burden Rates pane, clear the Use Resource Group Values check box.
2. In the Production field, enter 60.00.
4. Verify the Flat option is selected.
5. In the Costing Labor Rates pane, clear the Use Resource Group Values check box.
6. In the Production field, enter 25.00.
9. Click Save.
10. Exit Resource Group Maintenance.
30 Epicor ERP | 10.0.700.2

Job Costing Course Daily Job Costing Processing
Daily Job Costing Processing
This section of the course reviews job costing processing that take place during a typical work day. Some processes
include workshops which, although not typically performed by a cost accountant, are necessary to view the
corresponding transactional impact.
In general, cost accountants analyze data other manufacturing cycles create and review the results throughout
the job costing process. There are also times when cost accountants create and post transactions including
standard cost updates, labor entry, labor corrections, and job adjustments.
Cost Adjustment
Use Cost Adjustment to create standard, average, or last costs for newly-created parts or to change the unit
cost value for average, last, lot, or standard cost parts. The primary costing method is noted for reference but
you can maintain other cost methods as well.
After you enter or change costs and save the information, new transactions occur at the new unit price. If an
on-hand quantity exists when you change a unit cost, two transactions occur for each warehouse or bin that has
quantity on-hand. One transaction adjusts out the on-hand quantity and extended value of the part, and the
other adjusts in the on-hand quantity and new extended value of the part. These transactions are booked to the
general ledger (GL) when you execute the Capture COS/WIP Activity. A reason code for the valuation change
is required if they have been selected in Company Maintenance. The reason code has an optional GL control
associated with it to determine the appropriate offset GL account for the cost adjustment transaction.
Non-primary cost method unit costs also display. Some of these values, such as Average and Last costs, are
application-generated but you can manually change them. As these values are not used to value inventory, no
GL transaction occurs.
Important The costing method on a listed part can be changed only when the part has absolutely zero
on-hand quantity.
Menu Path
• Material Management > Inventory Management > General Operations > Cost Adjustment
Workshop - Enter Values
In this workshop, enter values for new parts and change the unit cost of an existing part.
The results of the changes are reviewed in a following workshop using the Part Tracker. Update the purchased
parts used in this section of the course in the following workshop.
Average unit costs are ordinarily created and maintained by the application; in this workshop, enter them manually
to establish data for future workshops that involve the Costing Workbench.
Important Due to necessary database setup and specific data used to enter cost values, this workshop
can only be performed by one person on a shared database. If you are unable to complete this workshop,
this does prohibit you from completing the Workshop - Create Standard Cost Values.
Epicor ERP | 10.0.700.2 31

Daily Job Costing Processing Job Costing Course
Enter Cost Values

Navigate to Cost Adjustment.
Menu Path: Material Management > Inventory Management > General Operations > Cost Adjustment
When you add new rates to standard cost (SD-) parts, note the material burden rate that pulls in. Each of the
SD- parts has a 10% material burden rate set. The average cost (AV-) parts do not have material burden rates
defined.
1. Click New.
2. In the Part field, enter SD-COMP1 and press Tab.
3. In the Average/Lot column, in the Unit Material field, enter 7.
4. In the Standard column, in the Unit Material field, enter 5.
5. In the Reason field, select Add New Part.
6. Click Save.
Notice the Total Unit Cost values for Average/Lot and Standard columns each display a value with a
10% markup.
7. Use steps 1-6 as a guide to enter the cost information for other parts using the data from the table below.
Click New to enter the cost values for the new part.
Click Save after you enter data for each part. Notice the standard costed parts total values include a 10%
markup, while the average costed parts do not include a markup percentage.
Part Average/Lot Column Standard Column - Reason Code

- Unit Material Unit Material
SD-COMP2 7.00 5.00 Add New Part
AV-COMP1 11.00 12.00 Add New Part
Modify the Primary Cost of a Part
1. Click New.
2. In the Part field, enter 1032x050 and press Tab.
3. In the Standard column, in the Unit Material field, enter .05000.
4. In the Reason field, select End of Year Adjustment.
32 Epicor ERP | 10.0.700.2

5. Click Save and exit Cost Adjustment.
Inventory/WIP Reconciliation Report
The Inventory/WIP Reconciliation Report displays details about material, labor, and overhead transactions as
they relate to GL account numbers. This report is best described as an analysis tool that quickly identifies detailed
transactions that relate to specific GL account numbers, jobs, or transaction types.
Transactions to WIP, COS, and inventory are not committed to the general ledger until you execute the Capture
COS/WIP Activity procedure. This report simulates the transactions posted to the GL by the Capture COS/WIP
Activity.
You can generate the report at any time to track transactions for a selected:
• Date range
• Journal entry
• Account number
• Job
• Transaction type
In addition, you can print this report for only transactions that have already been posted to the GL, for only
transactions that have not yet been posted, or for both at the same time.
Since this report captures simulated inventory, WIP, and COS information, it shows manufacturing variances for
closed jobs as records with a description of Phantom Purge of WIP to COS or Phantom Purge of WIP to Variance,
depending on whether the Direct Ship check box is selected in Company Configuration. These records do not
actually exist as MFG-VAR PartTran records in the database; they are temporary records created and displayed
so the user can review any current variances and make necessary corrections before they commit (post) COS and
WIP information to the database.
The Purpose of the Inventory/WIP Account Reconciliation Report

The Inventory/WIP Account Reconciliation Report allows reconciliation of the GL with costs from inventory and
WIP. As inventory transactions are generated, these costs accumulate in WIP and inventory. Summarize these
costs on this report and review the GL accounts used for each transaction. Most cost amounts in the Epicor
application, including cost of sales and WIP, are calculated using the base UOM assigned to the part for which
the specific cost is being calculated.
You can also run Capture COS/WIP Activity to post these costs to the GL.
Run this report with either a specific date range or a specific journal entry. It is possible to filter this report by
transaction type, job, and GL account. Indicate the account level and GL posting details if desired.
Because this report captures simulated COS and WIP information, it shows recent manufacturing variances for
closed jobs as records with a description of Phantom Purge of WIP to COS. These records do not exist as MFG-VAR
PartTran records in your database; they are temporary records created and displayed so you can view any current
variances and corrections before you commit COS and WIP information to the database.
When you run this report, simulated COS and WIP activity is automatically captured. Report processing time can
vary based on the data being filtered.
Epicor ERP | 10.0.700.2 33

Inventory/WIP Reconciliation Report Filters

The Inventory/WIP Reconciliation Report is a comprehensive, multi-page report you can filter to provide specific
details and exclude irrelevant data. Cost accountants may find these filters helpful in researching and concluding
how to determine costs.
• Date Range - Filtered by Start and End Date or by Dynamic
• Specific Journal Entry - Filtered by Fiscal Year, Suffix, and Journal
• GL Book - Filtered Book ID by Main Book, Corporate Consolidation, or Corporate Intermediate
• Specific G/L Account - Filtered by GL account
• Specific Transaction Type - Filtered by transaction type such as Labor, ADJ-CST, or MFG-CUS
• Specific Job Number - Filtered by job number
• Account Level Detail - Filtered by detail and summarized by Date/Job-Part/Tran Type, Date/Tran Type, or
Full
• G/L Posting Detail - Filtered by jobs Unposted to the GL, Posted to the GL, or both
Menu Path
• Material Management > Inventory Management > Reports > Inventory/WIP Reconciliation
• Production Management > Job Management > Reports > Inventory/WIP Reconciliation
• Service Management > Project Management > Reports > Inventory/WIP Reconciliation
Workshop - Review the Inventory/WIP Reconciliation Report
In the previous workshop, cost values were modified. Once you enter cost adjustments, it is important to go back
and review the ADJ-CST (adjust-cost) transactions on the Inventory/WIP Reconciliation Report.
Navigate to the Inventory/WIP Reconciliation Report .
Menu Path: Production Management > Job Management > Reports > Inventory/WIP Reconciliation
Important If you did not complete the Workshop - Enter Values, or if you are working in a non-refreshed
environment, your report results may vary from those outlined in this workshop.
1. In the Date Range pane in the Start and End fields, select today's date.
2. In the Transaction Type field, select ADJ-CST.
3. In the Report Style field, select Standard - SSRS.
5. Click Print Preview and review the report.

Note the ADJ-CST transactions for 1032X050, XXX-FIFO (where XXX are your initials) and the AV-COMP
and SD-COMP parts.
6. Close the report and exit the Inventory/WIP Reconciliation Report.
34 Epicor ERP | 10.0.700.2

Part and Method Trackers
The Part Tracker displays current information on parts in the database. This includes information such as revisions,
on-hand quantities, costs, locations, inspection, and planning data.
The Part Tracker can display one part at a time, but the Part Search feature allows you to pull multiple part records
into the Part Tracker at once.
Menu Path
• Executive Analysis > Trackers > Part Tracker
• Material Management > Inventory Management > General Operations > Part Tracker
• Material Management > Purchase Contracts Management > General Operations > Part Tracker
• Material Management > Purchase Management > General Operations > Part Tracker
• Material Management > Shipping / Receiving > General Operations > Part Tracker
• Material Management > Supplier Relationship Management > General Operations > Part Tracker
• Production Management > Engineering > General Operations > Part Tracker
• Production Management > Job Management > General Operations > Part Tracker
• Production Management > Material Requirements Planning > General Operations > Part Tracker
• Production Management > Quality Assurance > General Operations > Part Tracker
• Production Management > Scheduling > General Operations > Part Tracker
• Sales Management > Configurator Management > General Operations > Part Tracker
• Sales Management > Customer Relationship Management > General Operations > Part Tracker
• Sales Management > Order Management > General Operations > Part Tracker
• Sales Management > Quote Management > General Operations > Part Tracker
• Service Management > Field Service > General Operations > Part Tracker
• Customer Relationship Management > Configurator Management > General Operations > Part Tracker
• Customer Relationship Management > Sales and Marketing Management > General Operations > Part Tracker
• Customer Relationship Management > Order Management > General Operations > Part Tracker
• Customer Relationship Management > Quote Management > General Operations > Part Tracker
On Hand Sheets
The On Hand sheet provides useful information about the on hand status of the selected part.
Note Only quantity bearing parts support full inventory functionality. The inventory on-hand balance
quantity is not maintained for parts defined as non-quantity bearing. To indicate a part is non-quantity
bearing, clear its Quantity Bearing check box on the Part Maintenance Detail sheet.
Sites - Displays detailed information about the on-hand quantity of the part in the different sites where the
selected part is held.
Warehouses - Displays information about warehouse and bin on-hand quantities for the selected part by site.
Bins - Displays information about bin on-hand quantities for the selected part by site.
Epicor ERP | 10.0.700.2 35

Part Locations - Displays information about part locations by site, including output locations.
DMR - This sheet is only available if the Quality Assurance module is licensed. When available, it displays information
if the part is being held for the Material Review Board (MRB).
In Transit - This sheet is only available if the Multi-Site Management module is licensed. When available, it
displays in-transit information for the part when it is being transferred between sites.
Count History - Use the DMR sheet to view cycle and physical count history information for the part in all
warehouses or in a selected warehouse.
General Sheets
Use the General sheets to review primary information for the current part.
The Part Tracker retrieves this information from the Part record. General sheets are display-only versions of identical
sheets that appear in Part Maintenance.
Part - Displays important details about the selected part including its material burden rate, product group, and
part class.
Descriptions - Displays the available descriptions for the current part.
sites - Displays information about the sites where the part is stocked. This sheet contains five sub-sheets:
1. Detail - Displays detailed site information for the part.
2. List - Displays site information in a grid format.
3. Warehouse - Enter and update information about the current site.
4. Sales Kits - Displays sales kit configurations for the current part. If the part is set up as a sales kit parent
item, this sheet displays the configuration options selected for the kit.
5. Cycle Count\Physical Inv - Displays count parameters for specific parts in specific sites. These parameters
include cycle count intervals and quantity / percent / value tolerances.
Note These sub-sheets are read-only versions of the sites sub-sheets available in Part Maintenance.
UOMs - Displays the UOM information for a part.

Costs - Displays information about the standard, last, and average costs of the part. The Costing ID field on the
Detail sheet is the ID used to identify the cost for the part in a particular site.
Alternates - Displays information about the alternate parts you can use as substitutes for the current part.
Manifest Info - Displays the manifest carrier information being sent to an interfaced shipping product, in
particular, Agile or Insite.
GL Control - Displays GL Control detail information for the current part.
RoHS - Displays RoHS information for the part. Each part is defined by a Substance Restriction Type and has
indicators as to whether the part is RoHS compliant.
Origin - Displays country of origin information for the part. This denotes the specific countries in which the item
was manufactured, produced, or grown as well as the percentage makeup based on the quantity or value of the
raw materials.
For more information on icons viewable in the tree view, refer to Application Help topic: Job Entry - Job Tree
View.
36 Epicor ERP | 10.0.700.2

Workshop - Review the Part Tracker and the Method Tracker
In this workshop, use the Part Tracker's General sheets to review the primary information for multiple parts.
The Part Tracker retrieves this information from the part record. The General sheets are display-only versions of
identical sheets that display in Part Maintenance.
Important If you did not complete the Workshop - Enter Values, or if you are working in a non-refreshed
environment, the values you track may vary from those outlined in this workshop.
Review Standard Cost Part Details

Menu Path: Production Management > Job Management > General Operations > Part Tracker
1. In the Part field, enter 1032x050 and press Tab.
2. Navigate to the On Hand > Warehouses sheet.

Review the quantities on-hand for each warehouse.

Review the costs for each cost type and note the changes made to the standard material cost in the Std.
Material field.
Review the Part Transaction History
1. Navigate to the General > Part sheet.
2. Right-click in the Part field and select Open With > Part Transaction History Tracker.
3. Click Retrieve.
Several transactions display illustrating on-hand quantities in the warehouses. The total quantity on-hand
in each warehouse shows it was written off at the total old unit cost and written up at the total new unit
cost. When you execute a cost adjustment, this is what you can expect.
4. Review today's transactions to see the part's previous quantity and cost.
5. Exit the Part Transaction History Tracker but remain in the Part Tracker.
Review Cost Values for Parts
1. Navigate to the On Hand sheet.
2. On the Standard toolbar, click the Clear icon.
3. In the Part field, enter part number AV-COMP1 and press Tab.

Note the cost details added in the workshop task Enter Additional Values.
Epicor ERP | 10.0.700.2 37

Open a Part Revision with the Method Tracker
1. Navigate to the On Hand sheet.
2. Click Clear.
3. In the Part field, enter AV-TA and press Tab.
4. Navigate to the Revisions > List sheet.

You can associate each part in Part Maintenance with one or more revisions.
Each method of manufacture is associated with a specific revision.
5. Right-click in the Rev field and select Open With > Method Tracker.
The Method Tracker displays.
Review the Method Tracker
1. In the tree view, right-click Rev: A Part: AV-TA and select Tree > Expand Tree.
2. In the tree view, click various operations and materials to review their details.
3. Exit the Method Tracker and the Part Tracker.
Costing Workbench
The Costing Workbench is a multi-functional tool whose primary process is to create and post standard cost
updates.
The Costing Workbench is only available if the Engineering module is enabled. If this module is not enabled and
the cost method is standard, use Cost Adjustment to enter cost values.
Regardless of the primary cost method defined on the part record, the application maintains values for other
cost methods. For example, even though the primary cost method of a part is standard, the application updates
the average and last cost values on the part record as you receive parts.
Under no circumstances are average or last cost values on part records updated via the Costing Workbench
posting process.
Here are some examples of how to use this tool:
Engineering
Each engineer is responsible for a product line. You can define a single cost group. This enables engineers to
view and update costs for their parts. If a part is common across product lines, internal procedures dictate which
engineer owns that part.
38 Epicor ERP | 10.0.700.2

Periodic Updates
Standard costs are periodically updated; how often is dictated by internal procedures.
• You can define a single group and initially load the standard, average, or last value for parts. As you analyze
parts, you can refresh the value of different cost methods for selected parts. Rollups write off any manufacturing
costs loaded.
• You can define three groups, each for a different cost method. You can view the average and last cost groups
for analysis while you manually enter updates into the standard cost group.
Analysis
• Once the periodic update of standards is complete and posted, you can create a group, or multiple groups,
to monitor average and last costs throughout the year.
• The cost method is average or last, but the user wants to maintain standards as a secondary cost. A group is
created to define and update the standard cost value in the part's record. Use the primary cost method to
value inventory, but you can compare the standard cost or the previous year's average costs throughout the
year.
Menu Path
• Production Management > Engineering > General Operations > Costing Workbench
Detail Sheet
Use the Detail sheet to add a new cost set group or access an existing cost set group.
The fields on the Group > Detail sheet, also known as Cost Rollup Modifiers, are discussed in the Standard Costing
and the Cost Rollup section of this course.
Create a group to define parameters of the parts within it. Unlike other procedures, these groups do not clear
after they post to the GL. Costing groups, along with their details, are retained after posting occurs, which allows
you to view and track historical details and costing changes over time.
When you post a group, unit cost elements used for valuation purposes are updated immediately if the part's
costing method is standard. If changes in unit costs result in a change to on-hand inventory valuation, an entry
is made to the PartTran file and this updates the GL when you execute the Capture COS/WIP Activity. You can
roll or post selected (or all) parts, part classes, and product groups. Additionally, you can make resource group
and resource rate changes in the Costing Workbench. Also, you can update purchased parts and standard costs
in the group. If you post new rates, their corresponding resource group and resource files are updated as well.
The account number used to offset inventory revaluation is determined by the reason code you select when you
post a group.
The fields on this sheet (Cost Rollup Modifiers) are discussed in the Standard Costing and the Cost Rollup section
of this course.
Epicor ERP | 10.0.700.2 39

Parts Pane
Select the method through which costs are calculated in order to determine the values in this group. Each costing
method calculates costs differently.
Costing Method
The costing method value is used as the default when loading cost details. For example, your cost method is
standard but you want to load the current average or last value of the parts. Alternately, you want to initially
load the value of whatever the primary cost method is by selecting the costing method.
You can update values at any time for cost groups open over a significant period of time.
Last Part Refresh

The application maintains the last date the values were refreshed in this field. This field indicates the date of the
last time costs were updated for parts and is for display only.
Note You can select all part records, regardless of the primary cost method. There is no mechanism to
uniquely select only parts within a particular cost method. You can accomplish this using customized BAQ
searches.
Resource Pane
Select how the burden rates are determined for resource groups in this cost group.
Labor and Burden Rates

You can load labor and burden rates using the costing rate or quoting rate. The application maintains the date
these values were last refreshed. Select how burden rates are determined for resource groups in this cost group.
Valid selections are costing or quoting.
Last Burden Rate Refresh

This field indicates the date of the last time burden rates were updated for resource groups and is display only.
Last Labor Rate Refresh

This field indicates the date of the last time labor rates were updated for resource groups and is display only.
Actions Menu
Review this list for information on Actions menu options in this program.
Load Cost Details

Use this action to indicate the parts to load into the Costing Workbench for roll up, review, and possibly update.
This loads the parts and resources attached to the method. The parameters defined on the group heading default
here. You can change these values and execute this action multiple times before you use the Rollup function.
Note Each time you load costs, the parts you select to load are appended to the parts already loaded into
the workbench. For instance, selecting a manufactured part pulls in all manufactured parts, purchased
parts, resources, resource groups, and outside processes that are part of the MOM. If you load another
manufactured part, its additional materials and resources are appended.
40 Epicor ERP | 10.0.700.2

Refresh Cost Details

A cost group can be active for a significant period of time. At any time, and as often as necessary, you can select
this action to refresh the cost value to the most current actual. This is often done with average or last cost of
purchased items used in a periodic roll. Users may update average costs found to be wrong.
View Costs
Select this action if a manufactured part is selected to view the cost details of that assembly.
Rollup
Select this action to roll up the cost of all or selected parts, product groups, or part classes. There is a filter available
so the rollup can take frozen subassembly costs and roll them to a new top level item.
Post
Select this action to post the values defined in the group for all or selected parts, product groups, or part classes.
Select the check boxes that correlate to the desired filters to select desired items to post.
Note There is no reverse posting option. It is critical to review the Cost Set Group Report prior to posting
a group.
Print Cost Set Group

Print this report to view the old and new values of parts, resource groups, and resources prior to posting. There
is an option to print only variances.
Print Unapproved Methods List

Print this report to view unapproved revisions. If an unapproved revision is included in an assembly being rolled,
a warning message displays. In doing an annual cost roll, there should be no unapproved methods.
Copy the Before Costs data from the grid and the rolled up costs to an Excel spreadsheet. This provides a way
to more interactively view the impact of the cost rollup.
Standard Costing and Cost Rollup
The Cost Rollup calculation updates the standard costs of parts.

If a part is manufactured and has an approved revision, the BOM is rolled up to determine the new standard cost
value for the part. This calculation is run the Costing Workbench.
Use this program to create a cost group to pull in the costs of purchased and manufactured parts to review. If a
part has unapproved revisions, its costs are not rolled up. In this case, a message displays that indicates there are
one or more parts in the cost group with unapproved revisions.
Menu Path: Production Management > Engineering > General Operations > Costing Workbench
The Cost Rollup Process

This section contains a brief overview about how the Cost Rollup calculation is created and how it creates updated
costs for manufactured parts.
How a Cost Rollup is Created

The Cost Rollup calculation updates the standard costs of parts. This calculation is run in the Costing Workbench.
Use the Costing Workbench to create a cost group to pull in the costs of purchased and manufactured parts to
review, roll up, and post.
Epicor ERP | 10.0.700.2 41

There are four steps in the Cost Rollup process.
1. Pull in costs
2. Modify costs
3. Run the Cost Rollup calculation
4. Post costs
The rest of this section explains how this calculation works.
Step 1 - Pull in Costs

When parts are initially pulled into the cost group, the calculation starts by pulling in the top level part in each
job method and goes down through the BOM structure. This process determines which parts to include in the
cost group. If a part is used on multiple methods, it only appears once in the Costing Workbench.
When you select the Load Alternate Methods check box, additional methods for any parts currently not linked
to an active job method are also pulled into the costing process.
Current costs can also be pulled in from a site by selecting a site Cost ID. This identifier defines the cost set linked
to the site. Any parts linked to this site are then pulled into the cost group, and these part records contain the
base costing values used. For example, when you create a cost group for Site B, the Site A Cost ID is selected.
Part A is only linked to Site A, but because the Site A cost set is using it, Part A is still pulled into the cost group.
site Cost Maintenance also includes a skip revision cost option. When you select the Skip Revision Cost Rollup
check box, you indicate the Costing Workbench ignores the method of manufacturing defined for a purchased
part that has an approved revision. Costs are then not calculated for the purchased part through its method.
Instead, the Costing Workbench uses the cost method selected for the part in Part Maintenance to determine
its cost.
Likewise, you can copy part records from another cost group into the current cost group. This previous cost group
contains the base values modified within the current cost group.
This calculation also brings in all the labor and burden rates used on the selected BOM records. If a resource (a
piece of equipment, fixture, tool, or employee) is linked to a resource group (a defined grouping of similar
resources) used on a selected BOM, these additional rates are loaded into the Costing Workbench as well, even
though they are not directly connected to a job method.
Step 2 - Modify Costs

These changes cause the values associated with the different costing categories to update. These are the same
job costing categories used throughout the application (labor, burden, material, subcontract, and material burden).
When you modify these costs, change the estimated values used in the future for each part in the cost group.
When all the manufactured and purchased parts are loaded into the cost group, edit these costs as necessary.
Modify the labor and burden rates for each of the resources and resource groups in the cost group.
Step 3 - Run the Cost Rollup Calculation

After the costs are modified, run the Cost Rollup calculation.
To arrive at the labor and burden costs, the calculation uses the labor and burden rates defined on the resources
or resource groups that work on the operation. The JobOpr table in the method contains these values. It also
evaluates the different rates defined for setup and production, so the final estimated job cost reflects the various
rates defined for these manufacturing activities.
The Cost Rollup calculation then uses a selected costing method (average, last, FIFO, and standard) to arrive at
the final estimated unit cost for the part.
42 Epicor ERP | 10.0.700.2

Step 4 - Post Costs

Review the updated costs in the Cost Set Group Edit List. If you are satisfied with the cost results, run the Post
process. This updates the standard cost value of all the part records in the cost group, and these amounts become
the values used on future transactions on these parts. These adjustments are saved in PARTTRAN records.
Note Even though these costs are totaled, the application still records material, labor, burden, subcontract,
and material burden costs separately. When you issue part quantities from inventory, these costs are broken
up again into their separate buckets. Use this functionality to review these costs separately on various
reports and trackers.
Use the Costing Workbench to create cost groups and rollup the estimated cost of each part in the group.
Cost Rollup Modifiers

The following cost rollup modifiers are used in the Costing Workbench:
• Site - Use this field to enter or select the main site used during the initial cost load process. All the costs linked
to this site for the parts selected are then pulled into the Costing Workbench. The site defaults to the one
you are currently logged into but you can change it if the Multi-Site module is enabled and users have access
to that site.
• Proposed Posting Date - This field defines the expected date to post the updated standard costs. This is a
required field; groups do not have to post. You can delete them after the initial analysis is complete or keep
them as unposted groups to update and track cost changes.
• Posted Date - This is an application maintenance field that updates when a group posts. You can delete a
group at any time, regardless of whether it has posted. Epicor recommends you keep the annual or periodic
cost roll group.
• Load Alternate Methods - Select this check box if the alternate methods defined for the selected
manufactured parts are to be loaded in the cost group. The method attached to an approved revision with
the most current effective date is used as the default method to roll up costs. It is possible to define alternate
methods for a part, one of which must be defined as the primary alternate per site. A standard cost can be
generated for the alternate method by selecting this option.
• Load Costing Lost Sizes - Select this check box if the Costing Lot Size settings defined on the Part > Sites
> Detail sheet in Part Maintenance are to be loaded into the cost group. Setting costing lot size parameters
causes the Costing Lot Size field on the Manufactured Parts sheet to activate. Use this field to update the lot
sizes selected for the manufactured parts to use. If this check box is clear, the Costing Lot Size field is
unavailable. The field's value defaults to 1.00. If a costing lot size is defined on the part record, the setup cost
defined on a routing is divided by the costing lot size to arrive at a per unit setup cost.
• Copy from Site Cost ID - This is an optional field in which you can select a specific cost set from which to
load part cost information. This causes the Costing Workbench to load all data with the specified cost set
from the PartCost table.
• Copy from Cost Group - This is an optional field in which you can select a specific cost group from which
to load part cost information. Select an existing posted or unposted group to define the primary cost method
of the parts in this group. When you run the Load Cost Details action, the cost group loads with the costs
contained in the selected cost group.
Select to copy from an existing Cost Group rather than a site Cost ID if the what if costs are to be pulled into
the workbench.
• Costing Method - Select this option to choose the method through which the costs are pulled to initialize
the costs in this group. Select the average, last, FIFO, or standard costing method. Select a costing method
to use the costing method selected in the Part > site sheet for each part record.
• Burden Rates - Select this option to determine how to calculate the burden rates for the resource and resource
groups in this cost group. Update the Costing Burden Rates option for job estimates or the Quoting Burden
Rates option for quotes.
Epicor ERP | 10.0.700.2 43

• Labor Rates - Select this option to determine how to calculate the labor rates for the resource and resource
groups in this cost group. Update the Costing Labor Rates option for job estimates or the Quoting Labor Rates
option for quotes.
Workshop - Create Standard Cost Values
The purpose of this workshop is to demonstrate how the Epicor application utilizes different functions to create
and update standard cost values. While you can use the Costing Workbench for several purposes, it is important
to understand the main function of this procedure which is to create and update standard cost values.
The following principles are demonstrated in this workshop:
• Parts and their related values are loaded into a costing group.
• The costing lot size entered in Part Maintenance affects the calculation of labor and burden costs.
• Values other than the cost used to value inventory can be loaded and used as the basis for new standards.
• Labor and burden rates are updated via the Costing Workbench instead of in Resource Group Maintenance.
Important If you are working in a non-refreshed environment, the results you receive throughout this
workshop may vary.
Create a Group
Navigate to the Costing Workbench.
1. Click New.
Field Data
Group XXX-1 (where XXX are your initials)
Description Standard Cost Rollup
Site Main
Proposed Posting Date today's date
Load Alternate Methods Clear
Load Costing Lot Sizes Select
Copy from Site Cost ID Update Default
Costing Method Std
Burden Rates Costing
Labor Rates Costing
3. Click Save.
44 Epicor ERP | 10.0.700.2

Load Cost Details to Rollup
1. From the Actions menu, select Load Cost Details.

The Load Cost Details window displays.
2. On the Selection sheet, accept all defaults.
3. Navigate to the Filter > Part sheet.
4. Click the Parts button.
5. Search for and select SD-TA.

Tip In the Part Search window, sort by Part Number starting at SD.
6. Click OK.
7. Click Process.
8. Close the Load Cost Details window.
View Active Details
1. In the Costing Workbench, click Refresh.
2. Navigate to the Cost > Manufactured Parts sheet.
3. Click Search to display the Part Search.
4. Click Search to search for parts and Select All parts that display.
In the Search Results grid, all parts that relate to part SD-TA display.
5. Click OK and review the loaded costs.

All costs for parts are 0.00 because no standard costs have been posted against these parts.
6. Navigate to the Cost > Purchased Parts sheet.
In the Search Results grid, all parts that relate to part SD-TA display.
9. Click OK and review the loaded costs.
Epicor ERP | 10.0.700.2 45

Rollup Costs
1. From the Actions menu, select Rollup.

The Cost Rollup window displays.
2. Clear the Consider Pull As Assembly Settings check box.

Clearing this check box indicates you want subassembly costs to roll up to higher assemblies as elemental
costs. Subassembly Material costs roll up to the Material costs of the higher assemblies and Subassembly
Labor costs roll up to the Labor costs of the higher assemblies, and so on.
3. Click Process and close the Cost Rollup window.
Review the Results of the Rollup
All parts that relate to part SD-TA display in the search list.
5. Click OK.
6. Review and record the results in the table below.

Part SD-TA now shows the rolled up costs that came from its lower level assemblies.
Part Std. Material Std. Labor Std. Burden Std. Std. Material
Subcontract Burden
SD-SUB1
SD-SUB2
SD-SUB3
SD-TA
Tip You can also right-click the grid; from the context menu, select Copy to Excel. The grid then
® ®
displays in Microsoft Excel ; delete the columns you do not need.
10. Click OK.
46 Epicor ERP | 10.0.700.2

Subcontract Burden
SD-COMP1
SD-COMP2
SD-COMP3
SD-COMP4
Review Labor and Burden Rates
1. Navigate to the Cost > Burden Rates sheet.
4. Click OK.
5. Review burden costs.
6. Navigate to the Cost > Labor Rates sheet.
9. Click OK.
10. Review labor costs.
Rollup Costs
1. From the Actions menu, select Rollup.

The Cost Rollup window displays.
2. Verify the Consider Pull As Assembly Settings check box is selected.

By selecting this check box, subassembly costs are treated as material costs only as they roll into their higher
assemblies. The total value of subassemblies flagged as stocked becomes 100% material on the assembly
that requires it. The value of subassemblies in the method flagged as non-stock is valued at the possibly
mixed material value, pure labor value, and pure overhead value on the assembly that requires it.
The Production Detail Report displays costs and estimates in this manner.
Posting standard costs rolled up in this manner can prevent an accurate cost element distribution for Percent
of Sales analysis.
3. Click Process.
4. Exit the Cost Rollup window.
Epicor ERP | 10.0.700.2 47

Review the Results of the Rollup
4. Click OK.

Compare these results to the ones obtained in the prior workshop task.
Subcontract Burden
SD-SUB1
SD-SUB2
SD-SUB3
SD-TA
9. Click OK.

Compare these results to the ones obtained in the prior workshop task.
Subcontract Burden
SD-COMP1
SD-COMP2
SD-COMP3
SD-COMP4
Review Labor and Burden Rates
1. Navigate to the Cost > Burden Rates sheet.
48 Epicor ERP | 10.0.700.2

4. Click OK.
5. Review burden costs.

The rates that display are from the resource groups defined on the method of manufacture.
6. Navigate to the Cost > Labor Rates sheet.
9. Click OK.
10. Review labor costs.

The rates that display are from the resource groups defined on the method of manufacture.
Refresh Cost Details
1. From the Actions menu, select Refresh Cost Details.

The Refresh Cost Details window displays.
2. Select the Purchased Parts check box.
3. Select the Avg costing method.
4. Click OK.
5. Click Refresh.
9. Click OK.
10. Review the results.

The Std. material costs now show only the average cost adjustments made in the workshop task Enter
Additional Values. The rollup results refreshed to these costs per the selection in step three.
Print the Cost Set Group
1. From the Actions menu, select Print Cost Set Group.
2. Select the Changed Items Only check box.
3. In the Report Style field, select Standard - SSRS.
4. Click Print Preview to review the report.
Epicor ERP | 10.0.700.2 49

5. Exit the Cost Set Group report and close the Costing Workbench Report window.
Post the Cost Set Group
1. From the Actions menu, select Post.

The Cost Post Set window displays.
2. Clear the Labor Rates and Burden Rates check boxes.
3. In the Reason field, select End of Year Adjustment.
4. Click Process.
5. Close the Cost Post Set window.
6. Exit the Costing Workbench.
View the Part Tracker

Menu Path: Production Management > Engineering > General Operations > Part Tracker
1. Click the Part button to search for and select part SD-COMP1.

The Std. Material Cost for the part is now 7.00, which was the average cost adjusted in the Cost Adjustments
workshop.
3. Repeat steps 1 and 2 to review the cost details for parts SD-COMP2, SD-COMP3, and SD-COMP4.
Business Exceptions
These variables can impact the way standard costs rollup.

Lot Costing Size
Lot costing size is assigned at the part/site level, and this value defines the typical lot size that is manufactured.
The rollup divides the setup labor costs by the lot size.
Job Changes
When you make a standard cost item, you can change a job’s method for scheduling or material procurement
reasons. This changes the job’s estimate which displays on the Production Detail Report but has no effect on the
standard cost received to inventory. This normally results in manufacturing variances, for example, when you use
a more expensive machine because the standard machine is out of service.
50 Epicor ERP | 10.0.700.2

Job Costing Process
The workshops in this section of the course demonstrate the job costing process with a part that has an approved
MOM, is flagged as non-stock, and is average costed. This part is a new top assembly part and its components
have not been assigned a cost.
The workshops included illustrate the following process:
1. Create and engineer a quote.
2. Sell a non-stock part.
3. Create a job for the part.
4. Purchase and receive the non-stock part.
5. Add labor to the job.
6. Send the part to a subcontractor for work.
7. Receive the part back to the job.
8. Ship the part to the customer.
9. Commit transactions to the general ledger.
To review transactions, some workshops include steps to view the Inventory/WIP Reconciliation Report.
Material and Labor Processing
In this section of the course, workshops guide you through how to process orders and jobs. These transactions
include material purchases and labor transactions which are viewable on various reports and trackers.
Workshop - Create a Quote, Sales Order, and Job
In this workshop, establish the selling price for a custom made part and enter a customer sales order for the
desired quantity. Use the Order Job Wizard to create a job directly from the customer's order.
Create a Quote
Navigate to Opportunity/Quote Entry.
Menu Path: Sales Management > Quote Management > General Operations > Opportunity / Quote
Tip The CRM menu path is: Customer Relationship Management > Quote Management > General
Operations > Opportunity / Quote
1. From the New menu, select New Quote.
2. In the Customer field, enter Clarke and press Tab.
3. Click Save.
4. From the Opportunity / Quote field, record the quote number: _____________________.
Epicor ERP | 10.0.700.2 51

Add a Line Item to the Quote
1. Navigate to the Line > Detail sheet.
2. From the New menu, select New Line.
3. In the Part/Rev field, search for and select AV-TA.
4. In the Expected Quantity field, enter 10.
5. In the Quantities grid, in the Doc Unit Price field, enter 500.00.
6. Navigate to the Summary sheet.
7. Select the Quoted check box to indicate the quote is complete and ready to send to the customer.
8. Click Save.
9. Exit Opportunity/Quote Entry.
Create a Sales Order

Navigate to Sales Order Entry.
Menu Path: Sales Management > Order Management > General Operations > Order Entry
Tip The CRM menu path is: Customer Relationship Management > Order Management > General
Operations > Order Entry
1. From the Actions menu, select Get Opportunity/Quote.

The Create Order From Quote window displays.
2. In the Quote field, search for and select the quote you created in the workshop task Create a Quote.
3. Click Create Order.
4. On the Summary sheet, in the Need By and Ship By fields, enter a date two weeks from today's date.
5. Click Save.
6. To the Do you want to refresh the lines and releases with the changes? message, click Yes.
7. Navigate to the Lines > Detail sheet.
8. In the Order Quantity field, verify 10 displays.
9. Navigate to the Releases > Detail sheet and select the Make Direct check box.
When you select the Make Direct check box, it indicates the release quantity is manufactured directly instead
of pulled from inventory.
10. Click Save and navigate to the Summary sheet. .
11. From the Sales Order field, record the sales order number ___________ .
52 Epicor ERP | 10.0.700.2

Create a Job
1. From the Actions menu, select Order Job Wizard.

The Order Job Wizard - XXXX (where XXXX is your sales order number) window displays.
2. In the Order Job Wizard, Order Lines pane, in the Order Lines grid, select the following check boxes:
• Create Job
• Get Details
• Schedule Job
• Release Job
This action retrieves the methods, schedules the jobs, and releases the jobs for production.
3. Click the Create Jobs button.

In the Jobs grid, a new job number displays for the sales order line and release.
4. Click Save.
5. In the Releases grid, scroll to the Job column and record the job number ______________.
6. Exit the Order Job Wizard and Sales Order Entry.
Workshop - Create a Purchase Order
In this workshop, use Purchase Order Entry to enter and print new purchase orders (POs) and to update or
change existing POs.
In this workshop, create and approve a PO for supplier ABE Electronics and part AV-TA.
Create a Purchase Order

Navigate to Purchase Order Entry.
Menu Path: Material Management > Purchase Management > General Operations > Purchase Order Entry
1. From the New menu, select New PO.
2. In the Supplier field, enter ABE and press Tab.
3. Click Save.
Create a Line
3. In the Buy For pane, select Job Material.

The Job pane is enabled.
Epicor ERP | 10.0.700.2 53

4. In the Job field, enter the job number created for part AV-TA in the Workshop - Create a Quote, Sales
Order, and Job, in the Create a Job task.
5. Enter the following information:
Field Data
Asm 1
Mtl 10
Unit Price 11
6. Click Save.
Approve the Purchase Order
2. Select the Unapproved check box.

The Approved indicator displays.
3. From the PO Number field, record the purchase order number for part AV-TA ______________.
4. Click Save and exit Purchase Order Entry.
Workshop - Enter a PO Receipt
A purchase order was created to meet the demand for a job. In this workshop, perform the receiving transaction
and use the Job and Part Trackers to review the results.
Navigate to Receipt Entry.
Menu Path: Material Management > Shipping / Receiving > General Operations > Receipt Entry
1. From the New menu, select New Receipt.
2. In the PO field, enter the purchase order number created in the Workshop - Create a Purchase Order
and press Tab.
3. In the Packing Slip field, enter XXX001 (where XXX are your initials) and press Tab.
4. To the Add New message, click Yes.
5. From the Actions menu, select Mass Receipt.

The Mass Receipts window displays.
6. Click the Select All button.
7. Click the Get All button.
8. Click the Process button.
54 Epicor ERP | 10.0.700.2

9. Click the Close button.
10. Navigate to the Job Material > Detail sheet.
11. Select the Line Received check box.
12. Click Save and exit Receipt Entry.
Workshop - Add Labor Transactions
Cost accountants ensure accuracy when they report costs associated with labor. In the event labor is recorded
incorrectly, a cost accountant must know how to make labor entry corrections. In this workshop, add labor
transactions to a job and edit labor transactions for a job.
Important Due to necessary database setup and specific data used to add labor transactions, this workshop
can only be performed by one person on a shared database. If you are unable to complete this workshop,
this does prohibit you from completing the Workshop - View and Edit the Labor Edit Report.
Add Labor Detail Transactions

Navigate to Time and Expense Entry.
Menu Path: Production Management > Job Management > General Operations > Time and Expense Entry
1. In the Employee ID field, enter 100 and press Tab.
2. From the New menu, select New Time.

The Time > Daily Time > Summary > Detail sheet displays.
3. Review the daily results.
4. Click Save.
5. From the New menu, select New Time Detail.

The Time > Daily Time > Detail > Detail sheet displays.
6. In the Labor Type field, select Setup.
7. In the Job field, enter the job number created for part AV-TA.
This job was created in the Workshop - Create a Quote, Sales Order, and Job.
Field Data
Assembly 0
Operation 10
Setup % Complete 100
Labor Qty 0
Clock In 06:00
Clock Out 8:00
Epicor ERP | 10.0.700.2 55

Labor and burden hours are calculated based on clock in and clock out times. If these values are entered
directly, clock in and clock out times are not recalculated, which can affect custom reports that use these
values.
9. Click Save.
Add Labor
In this workshop, enter labor details for employee 100.
1. Verify the Time > Daily Time > Detail > Detail sheet displays.
2. From the New menu, select New Time Detail.
3. Enter labor against the job using the data in the table below.
With each new labor entry, from the New menu, select New Time Detail to create a new data line.
Use the job number created for part AV-TA in the Workshop - Create a Quote, Sales Order, and Job.
Click Save after you enter each labor record.
Labor Type Asm Opr Labor Setup % Clock In Clock Out

Qty Complete
Production 0 10 1 0 8:00 10:00
Setup 1 10 0 100 10:00 11:30
Production 2 10 1 0 11:30 01:30 (see note
below)
Production 1 10 1 0 01:30 (see note 02:30 (see note
below) below)
When you use the List sheet to add labor details, the clock in and clock out times are entered in decimal
hours. Instead of 01:30, you should enter 13:30. For this workshop, enter 01:30, knowing this is intentionally
incorrect. Do the same for the 02:30 entry. These errors are corrected in a later workshop.
4. Minimize Time and Expense Entry.
56 Epicor ERP | 10.0.700.2

Workshop - Track a Job
Use the Job Tracker to view the purchase order for the job. Note it was received and issued to the job. It is
important to notice what is received versus what is not received. Additionally, review the labor posted against
this job.
Important If you did not complete the Workshop - Add Labor Transactions, or if you are working in
a non-refreshed environment, the values you track may vary from those outlined in this workshop.
Review Material Transactions

Navigate to the Job Tracker.
Menu Path: Production Management > Job Management > General Operations > Job Tracker
1. In the Job field, enter the job number created in the Workshop - Create a Quote, Sales Order, and Job
and press Tab.
2. In the tree view, navigate to and select XXXX > ASM: 0 AV-TA > Subassemblies > ASM: 1 AV-SUB1 >
Materials > Mtl: 10 AV-COMP2 (where XXXX is your job number).
There is now a green check mark on this component material icon indicating the part has been issued to
the job.
3. Navigate to the Job Details > Materials > Material Transactions sheet.
4. Click the Retrieve button to display the material transactions.
Review Labor Transactions
1. In the tree view, navigate to and select XXXX > ASM: 0 AV-TA > Subassemblies > ASM: 1 AV-SUB1 >
Subassemblies > ASM: 2 AV-SUB2> Operations > Opr: 10 OP: SHEAR.
2. Navigate to the Job Details > Operations > Labor Transactions sheet.
3. Click the Retrieve button.

Scroll to the right to review the details in the grid view.
4. Navigate to the Job Details > Assemblies > Hours sheet.
5. Click the Retrieve button to review estimated versus actual hours.

If any erroneous labor transaction exists, estimated hours versus actual hours varies.
6. Navigate to the Job Details > Assemblies > Costs sheet.

Review estimated versus actual costs.
8. Click the Detail button.

The Cost Details window displays.
Epicor ERP | 10.0.700.2 57

9. Review cost details by assembly and material.
10. Close the Cost Details window.
11. Exit the Job Tracker.
Workshop - View and Edit the Labor Edit Report
You can edit labor entry details until you execute the Capture COS/WIP Activity or payroll is generated. In this
workshop, view the Labor Edit Report to view any errors and then edit any incorrect labor entries.
Important If you did not complete the Workshop - Add Labor Transactions, you cannot complete this
workshop.
View the Labor Edit Report

Navigate to the Labor Edit Report.
Menu Path: Production Management > Job Management > Reports > Labor Edit
1. Verify the End Date field displays the current date.

In this scenario, employee 100 shows 20 hours of labor for the Date Totals in an eight hour day. Review
the clock in and out times, and note the clock out error of 01:30. This is the reason the Labor Edit Report
displays 20 work hours in a day. This must be fixed in Time and Expense Entry before you commit this
employee's hours to the general ledger.
3. Close the report and exit the Labor Edit Report.
Edit Labor
1. Maximize Time and Expense Entry.
2. Verify the Time > Daily Time > Detail > Detail sheet displays.
3. In the tree view, navigate to and select the Employee > James B. Carville > My Time (1) > XX/XX/XXXX
> XX/XX/XXXX elements, one by one, to find the record where the clock in time is 11:30.
XX/XX/XXXX is the current date.
4. In the Clock Out field, replace 01:30 with 13:30.
5. Click Save.
6. In the tree view, navigate to and select the Employee > James B. Carville > My Time (1) > XX/XX/XXXX
> XX/XX/XXXX elements, one by one, to find the record where the clock in time is 01:30.
XX/XX/XXXX is the current date.
7. In the Clock In field, replace 01:30 with 13:30.
8. In the Clock Out field, replace 02:30 with 14:30
58 Epicor ERP | 10.0.700.2

9. Click Save.
The Labor Hrs field adjusts to reflect the correct amount of hours worked. Since the labor burden cost
element rolls into the cost of a part, a wrong labor detail entry can have an adverse affect on the application's
ability to capture the true costs of a part.
Submit Labor Hours
1. Navigate to the Time > Daily Time > Detail > List sheet.
2. Use the Shift key to highlight all the lines.
3. Click Submit.
Important If you receive an error stating your supervisor is not set up as an approver, you need to
change a setting on the Main site. Click OK to the message, then navigate to Site Configuration
Control:
• System Setup > Company/Site Maintenance > Site Configuration
Click the Site... button to find and select the Main site. Now access the Modules > Time and
Expense > Time sheet. Click on the Time Workflow Group drop down list; select the Supervisor
Approval option.
Save the record, then logout and login using manager/manager. Launch Time and Expense Entry
again and repeat these steps. Your time entries will be approved.
4. Exit Time and Expense Entry.
Review the Corrected Labor Edit Report

Now that the error is corrected, run a new Labor Edit Report and review the labor recorded. Had this error gone
unnoticed, the labor hours recorded would have a significant impact on the cost of the material, resulting in
inaccurate cost details.
Navigate to the Labor Edit Report.
Menu Path: Production Management > Job Management > Reports > Labor Edit
1. Verify the End Date field shows the current date.

Employee 100 now displays a total of eight hours of labor.
3. Close the report and exit the Labor Edit Report.

Use the Inventory/WIP Reconciliation Report to review the labor transactions entered against employee 100.
Navigate to the Inventory/WIP Reconciliation Report.
Menu Path: Production Management > Job Management > Reports > Inventory/WIP Reconciliation
Important If you did not complete the Workshop - Add Labor Transactions, or if you are working in
a non-refreshed environment, the report values may vary from those outlined in this workshop.
Epicor ERP | 10.0.700.2 59

1. In the Transaction Type field, select Labor.
2. In the Start field, select the first day of the current month.
3. In the End field, select the last day of the current month.
5. Click Print Preview and review the report that generates.
6. Exit the report and close the Inventory/WIP Reconciliation Report.
Subcontract Shipments and Receipts
Subcontractors are suppliers who complete operations for work in process parts outside your company.
Subcontractor shipments record the movement of materials from your company to outside vendors. The
Subcontract Status Report allows you to track planned subcontractor shipments and receipts.
Menu Path
• Material Management > Shipping / Receiving > General Operations > Subcontractor Shipment Entry
60 Epicor ERP | 10.0.700.2

Workshop - Create a Purchase Order for Subcontract Operation Material
In this workshop, create a purchase order for the subcontract operation material previously shipped to Rainforest
Painting Inc.
Create a Subcontract Purchase Order Header

Navigate to Purchase Order Entry.
Menu Path: Material Management > Purchase Management > General Operations > Purchase Order Entry
1. From the New menu, select New PO.
2. In the Supplier field, enter RFPaint and press Tab.
3. Click Save.
Add a Line
3. In the Buy For pane, select Subcontract Operation.
Field Data
Job Enter the job number from the Workshop - Create a Quote, Sales Order,
and Job.
Asm 0
Opr 20
5. Click Save.
7. Select the Unapproved check box.

The Approved indicator displays.
8. From the PO Number field, record the purchase order number for the subcontract job ________________.
9. Click Save and exit Purchase Order Entry.
Epicor ERP | 10.0.700.2 61

Workshop - View Planned Subcontractor Shipments
Cost accountants can view the Subcontract Status Report to see what materials must ship to a subcontractor or
to review what materials have already shipped to a subcontractor but have not returned. In this workshop, run
the Subcontract Status Report to see all planned subcontractor shipments for the next couple months.
Navigate to the Subcontract Status Report.
Menu Path: Production Management > Job Management > Reports > Subcontract Status
workshop may vary from those outlined.
1. In the Due on or Before field, enter the last day of the month, two months from today.
2. Select Planned Shipments.
3. Select the Print Transaction Details check box.
4. Select the Print Related Purchase Orders check box.

Since this report prints by supplier, look for planned shipments that relate to the job created for part AV-TA
by Rainforest Painting Inc.
6. Close the report and minimize the Subcontract Status Report window.
Workshop - Ship to a Subcontractor
In the job for part AV-TA, the last step for the top assembly is to ship the part to a subcontractor for painting.
In this workshop, use Subcontractor Shipment Entry to enter a shipment of part AV-TA to a subcontractor
supplier for painting.
Create a Subcontractor Shipment

Navigate to Subcontractor Shipment Entry.
Menu Path: Material Management > Shipping / Receiving > General Operations > Subcontractor Shipment
Entry
1. From the New menu, select New Pack.
2. In the Supplier ID field, enter RFPAINT and press Tab.
3. In the Ship Via field, select Ground BestRate.
4. Click Save.
Create Lines
62 Epicor ERP | 10.0.700.2

3. In the Job field, enter the job number created in the Workshop - Create a Quote, Sales Order, and Job.
4. In the Asm/Opr field, enter 0 and 20.
5. Verify the Ship Qty field displays 10.
6. Click Save and exit Subcontractor Shipment Entry.

If time and your environment allows, print the shipment to observe how a printed packing slip looks. The
shipment to the subcontract supplier results in a zero transaction. The value of the assembly remains in work
in process (WIP) on the job. When the subcontract receipt transaction occurs, only the value of the
subcontractor's charge is received to the job.
Workshop - Review the Subcontract Status Report
In this workshop, select the Planned Receipts check box and review the Subcontract Status Report. The shipment
made to Rainforest Painting Inc. in the previous workshop should now display as a planned receipt.
Note If time permits, re-print the Subcontract Status Report for planned shipments and notice the planned
shipment of part AV-TA to Rainforest Painting Inc. is no longer on it. This is because the part was shipped
in the last workshop.
Maximize the Subcontract Status Report.

1. Verify the Due on or Before field displays the last day of the month, two months from today.
2. Select the Planned Receipts option.
3. Verify the Print Transaction Details and Print Related Purchase Orders check boxes are selected.

This report shows that a shipment was made to a subcontractor for outside vendor painting, and the painted
parts are expected back two weeks from today.
5. Close the report and exit the Subcontract Status Report.
Workshop - Receive Subcontract Operation Material
In this workshop, receive back the subcontract material shipped in the Workshop - Create a PO for Subcontract
Operation Material.
Enter a Packing Slip

Navigate to Receipt Entry.
1. From the New menu, select New Receipt.
2. In the PO field, enter the purchase order number created in the Workshop - Create a PO for Subcontract
Operation Material.
Epicor ERP | 10.0.700.2 63

3. In the Packing Slip field, enter the same purchase order number and press Tab.
4. Click Save.
Mass Receive Material
1. From the Actions menu, select Mass Receipt.

The Mass Receipts window displays.
2. Click the Select All button.
3. Click the Get All button.
4. Click the Process button.
5. Click the Close button.
6. Navigate to the Job Subcontract > Detail sheet.
7. Select the Line Received check box.
8. Click Save.
9. Exit Receipt Entry.
Use the Inventory/WIP Reconciliation Report to review today's unposted transactions.

Menu Path: Material Management > Inventory Management > Reports > Inventory/WIP Reconciliation
1. In the Date Range pane, in the Start and End fields, enter today's date.
2. Accept all other report defaults.

Review the report results. Identify the purchase orders, packing slips, parts, suppliers, and employees you
entered transactions against in prior workshops. This report displays the GL accounts to which these
transactions will post when the Capture COS/WIP Activity process is performed. The accounts listed are
determined by the GL controls associated with each business transaction.
64 Epicor ERP | 10.0.700.2

Mass Issues to Manufacturing
Use Mass Issues to Manufacturing to quickly issue the planned materials to a job, rather than enter each
transaction individually.
The main advantage of Mass Issue to Manufacturing is that it issues material to the subassemblies at the same
time. Part transactions generated through this program reduce inventory quantities and post material costs to
jobs. This program is useful if your material estimates are accurate.
After you select the parts listed in the Pick List for Jobs report, they can be issued from inventory to the job or
assembly that requires the material. You can do this line by line or with the mass issue function.
When jobs have several raw material requirements, you can use the mass issue function to expedite the issuing
process. The mass issue function works well with job materials not controlled by serial numbers. If the job calls
for lot-tracked or dimension-tracked material, select the appropriate lot number or dimension code when you
process the mass issue. You will receive prompt messages when you save the transaction.
Menu Path
• Material Management > Inventory Management > General Operations > Mass Issue to Mfg
• Service Management > Field Service > General Operations > Mass Issue to Mfg.
Workshop - Mass Issue to Manufacturing

In this workshop, quickly issue all remaining materials planned for the job created in the Workshop - Create a
Quote, Sales Order, and Job.
Navigate to Mass Issues to Manufacturing.
Menu Path: Material Management > Inventory Management > General Operations > Mass Issue to Mfg
1. In the Job field, enter the job created in the Workshop - Create a Quote, Sales Order, and Job and press
Tab.
2. In the Assemblies grid, select the line for Assembly 0, part AV-TA.
3. Select the Include Subassemblies check box.
4. Click the Issue button.

The Issue > List sheet displays.
5. Click the Issue All button.
6. Click OK.
The Issued Complete check box for Assembly 2, Mtl 20, Part AV-SUB3 selects automatically.
7. If a warning message display, click Yes.
8. Exit Mass Issues to Manufacturing.
Epicor ERP | 10.0.700.2 65

Customer Shipment Entry
Use Customer Shipment Entry to process customer shipments. You can either relieve inventory or ship directly
from a job.
Important If a part ships via Customer Shipment Entry, it is standard costed. Shipment from the
work-in-process (WIP) transaction (MFG-CUS) captures the standard unit cost for the part rather than actual
costs from the job. If there are variances between the standard cost of the part and the actual costs of the
job, a MFG-VAR transaction is also created for the remaining WIP balances.
• If you select the Save Shipment for Invoice check box in the Company Configuration > Modules > Sales
> Order sheet, you can use the Get Shipments function in AR Invoice Entry to quickly create invoice entries
for the customer shipments entered into Customer Shipment Entry.
• If you try to enter shipments for customers on credit hold, you receive warning messages. For more information
on customer credit checking, refer to the Customer Credit Checking topic in the Application Help.
• If you use the Advanced Production module, you can ship multiple part quantities from the same job and/or
batch job. The quantities available to ship are defined on the quantity available on the final operation. For
more information, refer to the Advanced Production Module topic in the Application Help.
• If you use the Document Management module, you can attach Certificate of Compliance documents to the
customer shipment.
If the ERS Orders check box is selected for the order in the Demand Entry > Header > Detail, Sales Order
Entry > Header > Detail and Sales Order Entry > Summary sheets, Customer Shipment Entry automatically
generates ERS (Evaluated Receipt Settlement and Self Billing) invoices for billings for the customer. ERS invoicing
allows your customer to pay invoices based on packing slip information they receive from your company.
• The ERS invoice is created for the amount of goods shipped in the pack, at the prices set in the sales order.
• If designated for the company, the invoice also generates a legal number for the resulting invoice. This
information prints on resulting AR invoices and packing slips.
• When the pack is marked as Shipped, the invoice automatically posts. If the pack is marked as Unshipped,
the Epicor application automatically generates a cancellation invoice; the next time the pack is marked as
Shipped, a new invoice is automatically generated again.
Note ERS and non-ERS orders are not allowed in the same pack. If the first order release is added to a
pack that belongs to an ERS order, non-ERS order releases are not allowed in that pack.
Note A warning message appears if you attempt to mark a pack as Shipped if it contains lines for an order
that has been marked as Ship Complete (in Order Entry), but the actual shipment is only partially complete.
This message simply attempts to warn the user of this situation. but can be dismissed, allowing shipment
of the pack.
Menu Path
• > Customer Shipment Entry-Load Planning
• Material Management > Shipping / Receiving > General Operations > Customer Shipment Entry
66 Epicor ERP | 10.0.700.2

Workshop - Ship an Order and Review Transactions
Material, labor, and overhead was charged to the job for part AV-TA and is ready to ship to the customer. Review
the results of the transactions on the Inventory/WIP Reconciliation Report and use the Job Tracker to review the
labor transactions posted against this job.
Create a Mass Shipment

Navigate to Customer Shipment Entry.
Menu Path: Material Management > Shipping / Receiving > General Operations > Customer Shipment Entry
1. From the New menu, select New Pack.
2. In the Order Number field, enter the sales order number you created in the Workshop - Create a Quote,
Sales Order, and Job and press Tab.
3. Click the Mass Shipment button.
4. Click the Ship All button.

Use the scroll bar at the bottom to review the grid display of the order and the quantity shipped.
5. Click the Update button.
6. Select the Shipped check box.
7. Click Save and exit Customer Shipment Entry.
Review the Inventory/WIP Reconciliation Report

In this workshop, review the Inventory/WIP Reconciliation Report to verify the shipment to customer Clarke
Manufacturing was successful.
Note Customer shipments are recorded using the MFG-CUS transaction type.

Menu Path: Material Management > Inventory Management > Reports > Inventory/WIP Reconciliation
1. In the Transaction Type field, select MFG-CUS.
2. Click Print Preview and review the shipment made in the workshop task Create a Mass Shipment.
Note COS accounts are relieved when a transaction ships. If the Use A/R Clearing Account check box
is selected on the Modules > Finance > Accounts Receivable > General sheet in Company Configuration,
the COS amounts are booked to the A/R Clearing account you define in the company's Inventory COS
and WIP GL control. Once you invoice the shipment and execute the Capture COS/WIP Activity, the
amount moves out of the A/R Clearing account and into COS.
Epicor ERP | 10.0.700.2 67

Review Job Transactions

Navigate to the Job Tracker.
Menu Path: Material Management > Inventory Management > General Operations > Job Tracker
1. In the Job field, enter the job number you created in the Workshop - Create a Quote, Sales Order, and
Job.
2. In the tree view, right-click ASM: 0 AV-TA and select Tree > Expand Tree.
Green check marks display on material issued and operations which indicate they are complete.
Review Material Transactions
1. In the tree view, select a Material with a green check mark on the material tag icon.
2. Navigate to the Job Details > Materials > Material Transactions sheet.

Scroll to the right to review the details in the grid view.
4. Exit the Job Tracker.
Job Closing Process and Late Arriving Costs
Use Job Completion/Closing Maintenance to complete and close jobs, which are two separate actions. The
job closing process affects the general ledger (GL) only after you run the Capture COS/WIP Activity. Completing
a job has no affect on the GL.
Two separate transactions allow both production control and accounting to review a job's current information
and make changes if necessary.
A complete job has finished production but is still waiting for approval or additional costs. It can still receive labor,
material, shipping, invoice, and other transactions. Completing a job removes any outstanding load for operations
that are incomplete and material allocations for materials that are not issued complete. You can also adjust a
job's labor and material quantity and costs. To backflush a job’s materials, select the Backflush check box.
A job is closed when it is completely finished and costed. Costs are no longer posted against it, but you can keep
the job record as long as necessary for review. Typically, the accounting department closes a job after its financial
transactions are audited. Closed jobs no longer display on various sheets and reports. They are also unavailable
for transactions and adjustments.
When a job is closed, its production is finished and you can no longer place expenses against it. All of its costs
are also automatically moved from the WIP to the COS accounts when you execute the Capture COS/WIP Activity.
For more information on how to close a job, refer to the Application Help topic: Job Completion / Closing
Maintenance - Complete and Close a Job.
Menu Path
• Production Management > Job Management > General Operations > Job Closing
68 Epicor ERP | 10.0.700.2

Candidates
When jobs are available to be completed, they display as Candidates.

Jobs available to be completed display as Candidates in the Job Search/Job Filter when:
• The last operation is complete.
• A packer is created (non-stock part).
• The top level part is moved to inventory.
Complete
This section reviews the steps to take before a job can be marked as complete and what happens once a job is
marked as complete.
Typically, production control reviews candidate jobs (estimated versus actual) and marks them as complete.
The following transactions can and should occur before or after a job is marked as complete:
1. You can and should update the method on the job because:
• It is critical for repeat jobs for costing, estimating, and scheduling.
• It saves investigation time when you quote from a job.
• It enables same-as-except scenarios with confidence.
2. Labor, burden, material, and adjustments that are not transacted are charged.
When a job is marked as Complete, the following occurs:

• All load is removed (Scheduling).
• All material requirements are removed (MRP and PO suggestions).
• The cost is calculated based on the pieces completed.
• The option to backflush unissued materials becomes available.
Job Completion Frequency
The frequency with which your company marks jobs as Complete should follow the below criteria.
Daily
• Facilitates a real-time environment
• Keeps the shop load clean (Scheduling)
• Keeps material requirements clean (MRP and PO suggestions)
• Allows you to investigate discrepancies before everyone forgets the how, what, and why of a transaction
Weekly
This is only recommended if your company schedules or plans on a weekly basis.
Epicor ERP | 10.0.700.2 69

Close
Accounting personnel are generally responsible for marking jobs as closed. Estimates versus actuals are reviewed
again and any required adjustments are made either by the accounting or production control departments.
Jobs should be Closed only at month-end, prior to executing the Capture COS/WIP Activity and only after
discrepancies are resolved and all directly purchased materials are invoiced.
You can use the following reports and trackers to review the closing information:
• Received but not Invoiced Report
• Work In Process Report
• Part Tracker
Note Linked sales order lines are not closed automatically when the related job is closed. Only shipping
order lines or manually marking order lines as closed will close order lines.
Technically, a job can be re-opened, marked incomplete or have late arriving costs charged to it; however,
these actions are not advisable after you run the Capture COS/WIP Activity.
Close vs. Complete
There are some reasons for not closing jobs at the same time as marking them Complete.
• Time saved in concurrent processing is quickly lost when you re-open closed jobs.
• Late arriving costs are typical in custom manufacturing environments.
• Closed jobs drop off the WIP report which impacts the Inventory/WIP Reconciliation and COS calculations.
Standard Cost Job Closing Process
When a job is closed that is standard costed, run the Inventory/WIP Reconciliation Report to see the manufacturing
variances.
These variances bear the MFG-VAR transaction type and have a reference of Purge WIP To Variance
These entries are the anticipated variance transactions based on the job transactions. Review the Inventory/WIP
Reconciliation Report to preview variances before committing them to the general ledger (GL). If an erroneous
variance displays on the report, you can open and review a job without having to commit the variance to the GL
first. Also, accounting can determine which jobs must be reviewed without printing a variety of reports or perform
evaluations on jobs while reviewing the Production Detail Report.
Once a job is closed and transactions are committed to the GL, the application no longer posts variances to that
job. If there is need to re-open the job, the user must be aware that if the WIP Cleared check box is selected in
Job Completion/Closing Maintenance at the time the job is closed, any further variance must be manually
determined and posted.
Production Detail Report
The Production Detail Report prints all labor, material, shipping, and invoicing activity to date for the specific
jobs and assemblies selected.
Labor and burden display separately. Most cost amounts in the Epicor ERP application, including cost of sales
and WIP, are calculated using the base unit of measure (UOM) assigned to the part for which the specific cost is
being calculated.
70 Epicor ERP | 10.0.700.2

The Production Detail Report can also display profitability information for each job by comparing job costs with
AR invoicing information. It also displays information about discrepant material.
Use the Selection sheet to select report parameters and the Filter sheet to select specific records to include on
the report.
For more information on how to review the status of any printed, previewed, or generated reports, refer to the
Application Help topic: System Monitor.
Menu Path
• Production Management > Job Management > Reports > Production Detail
Workshop - Review and Complete a Job
In this workshop, use the Production Detail Report to review actual job totals and costs. After you review this
report, complete the job.
Review the Production Detail Report

Navigate to Job Completion/Closing Maintenance.
Menu Path: Production Management > Job Management > General Operations > Job Closing
1. In the Job field, enter the job created in the Workshop - Create a Quote, Sales Order, and Job and press
Tab.
2. Select the Print Production Detail check box.
3. Click Save.
The Production Detail Report window displays.
4. Select the following check boxes:

• Print Material Transactions
• Print Material Cost Breakdown
• Print Operation Transactions
• Print Profitability Information

Review operations 10 and 20 and observe the cost adjustment details for part AV-COMP2. This report is
valuable for cost accountants because it displays every job detail.
6. Close the report and exit the Production Detail Report window.
Complete and Close a Job
1. Clear the Print Production Detail check box.
Epicor ERP | 10.0.700.2 71

2. Select the Complete check box.
3. Click Save.
4. Select the Close check box.
5. Click Save.
6. Exit Job Completion/Closing Maintenance.
Job Costing Reports
Typically, the nature of job costing focuses on data analysis, rather than transaction creation. In this section,
review important job costing related reports that have not yet been identified in this course.
Stock Status Report
The Stock Status Report serves as a subsidiary ledger to the Inventory account(s). The report total is the end
value of inventory and should reconcile to the end balance of the Inventory account(s). The cost methods identified
on part records are used for valuation.
Consider saving the month-end Stock Status Report to a disk or use the System Monitor capabilities to print this
report on the last day of the month, outside business hours.
Items to note when you try to reconcile the GL to the Stock Status Report:
• To accomplish an accurate cut-off for month-end reconciliation purposes, the cut-off date should reflect the
last date of the current fiscal period. You must execute the Stock Status Report after all transactions are
completed on the last day of the month and prior to any new transactions on the first day of the month.
• The Stock Status Report does not show items that have been rejected and are waiting for disposition in the
DMR warehouse. If the part has not been received into inventory, it should not display up in the Stock Status
Report.
• Manual journal entries made to your Inventory account(s) may not correspond with the transactions posted
from the inventory interface. This can cause a discrepancy between your Stock Status and GL Reports.
Stock Status Report Options

The following are options to select on the Stock Status Report:
• Select all warehouses or part classes or both.
• Select purchased, manufactured, or non-stock parts or all three.
• Exclude zero on-hand quantities.
• Sort and subtotal by part/warehouse, warehouse/part, or part class/part/warehouse.
• Summarize totals.
• Select negative on-hand quantities only.
• Display all activity from the cut-off date.
When the Negative On-hand Quantities option is selected, only parts with a negative on-hand quantity print. If
this option is not selected, parts with negative on-hand quantities are included in the report, but a separate
subtotal is included in the grand total.
In addition to a clean cut-off, it is recommended to include non-stock parts and non-nettable parts and sort by
part class/part/warehouse. Selecting these options aids in reconciliation of the detail to the general ledger.
72 Epicor ERP | 10.0.700.2

Menu Path
• Material Management > Inventory Management > Reports > Stock Status
Work in Process Report
The Work in Process Report serves as the subsidiary ledger to the WIP GL accounts. The report total is the end
value of the WIP and should reconcile to the end balance of the WIP account(s). The Work in Process Report
simulates the Capture COS/WIP Activity; therefore, processing can take some time.
This report lists all jobs internally marked as not cleared from WIP by the Capture COS/WIP Activity.
You can mark jobs as complete or closed any time during the month; once a job is marked as closed, it is processed
by the Capture COS/WIP Activity and is no longer included in this report.
To accomplish an accurate cut-off for month-end reconciliation purposes, the cut-off date should reflect the last
date of the current fiscal period. You must execute the Work in Process Report after all transactions are completed
on the last day of the month and prior to any new transactions on the first day of the month.
This report contains the following options:
• Some or all parts, jobs, and product groups
• Sort and subtotal by job, part, or product group
This report displays the following values per job, broken out elementally:
• To Date - Total costs incurred to date to WIP
• To Inventory - Costs from the job via any means except customer shipment
• COS - Costs relieved to COS for product shipped from WIP
• WIP - Current value of WIP
In addition to a clean cut-off, it is recommended to sort by product group; this aids you when you reconcile the
detail to the general ledger.
Menu Path
• Production Management > Job Management > Reports > Work In Process
Inspection Pending and Open DMR Status Reports
Both the Inspection Pending Report and the Open DMR Status Report serve as subsidiary ledgers to specific
GL accounts.
Inspection Pending Report

This report serves as the subsidiary ledger to the Inspection GL account(s). It lists all items received to inspection
through Receipt Entry that are awaiting inspection processing. The report total should reconcile with the ending
balance of the Inspection GL account(s).
Menu Path
• Production Management > Quality Assurance > Reports > Inspection Pending
Epicor ERP | 10.0.700.2 73

Open DMR Status Report

The Open DMR Status Report serves as the subsidiary ledger to the DMR GL account(s). It includes subtotals
for each DMR and a grand total of the value of all open DMRs. The report total should reconcile with the ending
balance of the GL account that populates the DMR field in the company's control account(s). This report displays
basic information about all open DMRs as well as a section that reviews the transaction history. Subtotals for
each DMR and a grand total of the value of all open DMRs are also included
If the Quality Assurance module is enabled, you must execute these reports after all transactions are complete
on the last day of the month and prior to any new transactions on the first day of the month.
Menu Path
• Production Management > Quality Assurance > Reports > Open DMR Status
Bill of Material Cost Report
You can print the Bill of Material Cost Report to display cost information for part revisions. If a specific part
revision is selected to print, you can enter a specific production quantity and an effective date. On this report,
costs are broken down into material, subcontract, labor, burden, and material burden.
• Filter by parts or product groups.
• Format the report to display the end part only, indent each level, or display full indentation.
When the Cost Comparisons check box is selected, a section is added at the end of each BOM total that displays
each costing element for all cost methods.
Note This report is only available if the Engineering module is licensed and enabled.
Menu Path
• Production Management > Engineering > Reports > BOM Cost
Material Transaction Detail Report
The Material Transaction Detail Report displays details that pertain to material transactions created through
receipts, issues, shipments, and adjustment processing. Unlike the Inventory/WIP Reconciliation Report, the intent
of this report is to provide the ability to track transactions that relate to a selected part(s); related account numbers
do not display.
Transactions display on this report regardless of whether they have been posted to the general ledger.
• Select all or some parts, warehouses, and transaction types.
• Sort and subtotal by part/warehouse or warehouse/part.
Menu Path
• Material Management > Inventory Management > Reports > Material Transaction Detail
74 Epicor ERP | 10.0.700.2

Sales Gross Margin Report
The Sales Gross Margin Report displays the gross margin of products shipped from inventory or WIP. This
report only displays gross margin values for parts shipped and invoiced using the Actions menu's Get Shipments
functionality in Accounts Receivable Invoice Entry.
Cost amounts pull from either the part master's value at the time the parts were shipped from inventory or at
the time the material, labor, and burden (overhead) transactions were posted to jobs shipped directly from WIP
to the customer. The logic used to determine the cost of parts shipped from WIP is similar to that used by Capture
COS/WIP Activity.
• Select all or some customer groups, product groups, customers, or parts
• List price, unit price, or net price options
Pricing Options
• List Price - Price before any order-based pricing or discounts are subtracted from the price.
• Unit Price - Price after any order-based discount(s) are subtracted from the list price. This value does not
include discounts defined in Price List Inquiry.
• Net Price - Price after both order-based discounts and price discounts are subtracted from the list price.
If you do not use price groups to define order-based discounts, the list price and unit price values are the same.
If you do not use price lists to define base pricing and related discounts, all three values are the same.
Menu Path
• Financial Management > Accounts Receivable > Reports > Sales Gross Margin
Capture COS/WIP Activity Process
Use the Capture COS/WIP Activity process to execute the calculation process for work-in-process (WIP) and/or
cost of sales (COS) for standard jobs, project jobs, inventory, receipts, and adjustment transactions.
The Epicor application does not calculate and post monetary amounts to the general ledger (GL) as soon as
inventory or job transactions are complete. Transactions are calculated (captured) and optionally posted to the
GL when this process is run. To keep your COS and WIP values accurate, you should run this process at regular
intervals.
Most cost amounts in the Epicor application, including COS and WIP, are calculated using the base unit of measure
(UOM) assigned to the part for which the specific cost is being calculated.
Run the Capture COS/WIP Activity periodically to do the following:
• Calculate COS for any shipments made from WIP.
• Calculate costs relieved from WIP.
• Capture landed costs into WIP and credit the landed cost recovery account.
• Calculate COS and WIP for all job types and costing types.
Important In order to post COS for jobs and variances, select the Post Cost of Sales/Mfg Variances
check box.
Epicor ERP | 10.0.700.2 75

• Remove closed jobs from WIP.

• Optionally, post inventory and WIP activity to the GL.
Tip When Capture COS/WIP Activity encounters a project job type (PRJ), the process searches for a GL
Control to use for posting purposes based on the following hierarchy:
• The process reviews the project for a defined GL Control. The GL Control is defined in the Project Entry
> GL Control > Detail sheet.
• If no GL Control is defined at the Project level, this process defaults to the Project Billing GL control
defined at the Company level. The GL Control is defined in the Company Maintenance > All Materials
> GL Control > Detail sheet.
Important To keep your COS and WIP values accurate, you should run this process at regular intervals.
Epicor recommends you run the Capture COS/WIP Activity at least once each fiscal period - just before you
close the period in the GL book.
Tip You can simulate this functionality using the WIP report, the Sales Gross Margin report, and the
Inventory/WIP Reconciliation report. These reports attempt to determine COS and WIP using the latest
information in the database. Because all costs have not posted to jobs, these reports do not necessarily
display accurate, final manufacturing (PartTran MFG-VAR records) variances.
Menu Path
• Material Management > Inventory Management > General Operations > Capture COS/WIP Activity
• Production Management > Job Management > General Operations > Capture COS/WIP Activity
• Service Management > Project Management > General Operations > Capture COS/WIP Activity
Workshop - Capture and Post Inventory Transactions
All transactions are now complete for the job, with the exception of entering the Accounts Payable invoice. In
this workshop, capture and post (commit) outstanding inventory transactions to the general ledger (GL).
Navigate to Capture COS/WIP Activity.
Menu Path: Production Management > Job Management > General Operations > Capture COS/WIP Activity
Important Due to the logic of the Capture COS/WIP Activity process, this workshop can only be performed
by one person in a multi-user mode shared database. When that person completes the process, all COS/WIP
transactions post.
If only one person is completing this course at the present time, this workshop can be completed in its
entirety. Results may vary in a non-refreshed environment.
1. Verify the Post to General Ledger check box is selected.
2. Select the Post Cost of Sales / MFG Variance check box.
3. Click Submit.
4. Exit Capture COS/WIP Activity.

Note If desired, run the Inventory/WIP Reconciliation Report for posted transactions only. Notice
transactions completed in prior workshops now display as posted. You can also run a General Ledger
Report for the current period to illustrate how the transactions are now committed to the GL.
76 Epicor ERP | 10.0.700.2

Job Costing Course Transaction Analysis
Transaction Analysis
The following section depicts the account flow of currency (using dollars as an example) that relates to purchasing,
WIP, and COS transactions in an interfaced environment using standard posting rules without customization.
The transaction types discussed in this section of the course can be found in the Epicor ERP Inventory
Transaction Hierarchy section found in the course's appendix.
T-Account Flow
Depicted below is a diagram that shows how T-Account transaction illustrations are explained throughout this
course. The flow (hierarchy) used to locate these accounts is included in the course's appendix.
Note this hierarchy is only accurate when the application's Standard Posting Rules are used and these rules are
not customized. Standard posting rules are delivered with your software installation and in most cases, are
automatically active. Standard posting rules use a chart of accounts comprised of one to three segments (in this
case, Division, Chart, and Department). For more information on posting rules, refer to the Posting Engine course
or the Application Help.
Purchasing Activity
Below is a T-Account representation of the flow of dollars that relate to purchasing, receipt, and payment activities.
Although the transactions are based on the standard cost method, the transactional flow, without purchase price
variances (PPV), is accurate for other cost methods as well.
Note To benefit from this section of the course, it is essential to have a clear understanding of how a
hierarchy works and how the GL controls work in the Epicor application. For more information, refer to
the General Ledger course.
Epicor ERP | 10.0.700.2 77

Transaction Analysis Job Costing Course
Basic assumptions regarding these transactions include:

• Standard material cost = $1.00
• Standard material burden cost = 10%
• Purchase order price = $1.50
• Invoice price = $1.80
• Posting rules have not been customized.
1. PUR-STK
A material purchase is received to inventory.
A $0.55 inventory variance from the standard cost is written off to the Purchase Price Variance (PPV) account
from the part class's GL control. If a part class was never selected on this purchased part or if the part class's
GL control did not contain a PPV account, instead, the transaction is written off to the inventory adjustments
account selected on the company's GL control code for the Inventory COS and WIP GL control type.
Material receipts to inventory at average cost can cause the unit average cost to recalculate. There is no GL
impact when an average unit cost is revalued.
2. PUR-MTL
Materials are purchased and received directly to WIP.
• Material is received at the PO price.
• Burden is applied to the PO price.
Purchase receipts directed to WIP always affect the WIP at the PO price, regardless of the cost method.
3. MFG-VEN
Shipment of an assembly to an outside supplier for subcontract work has no cost impact. All dollars remain
in WIP, despite the fact that materials are physically at a supplier site. Use the Subcontract Status Report
to monitor assemblies that reside at a supplier site.
4. PUR-SUB
Receipt of the subcontract PO line is received into WIP at the PO price.
5. Accounts Payable Invoice

Accounts Payable (AP) receives and invoices goods from suppliers. There are three invoice lines, each priced
$0.30 higher than the PO price. The WIP and variance accounts are not updated until Capture COS/WIP
Activity is executed; the AP clearing account selected on the company's GL control code for the AP Account
GL control type updates when the invoice posts.
78 Epicor ERP | 10.0.700.2

When PO to invoice differences (PPV) exist, posting the invoice creates an ADJ-PUR transaction in the same
fiscal period as the invoice to which it relates.
6. ADJ-PUR
When the Capture COS/WIP Activity process is executed for the period in which the ADJ-PUR transaction
was created, the GL updates with the PO to invoice differences created during AP invoice entry. This is true
regardless of a part's costing method.
• Receipts to inventory are written off to the Variance account selected on the company's GL control code
for the AP Account GL control type.
• Receipts to WIP material update the job.
• Receipts to WIP subcontract update the job.
If the job is closed and the Capture COS/WIP Activity executed, the PO to invoice difference hits the
Manufacturing Variance account selected on the company's GL control code for the Inventory COS and WIP
GL control type.
7. PUR-UKN
A non-inventory PO line, or miscellaneous receipt entry line, is received.
Although an expense account can default in from one of several program records assigned GL controls, a
buyer can override the default account number.
8. Accounts Payable Invoice

Accounts Payable receives and vouchers the invoice for the expense item purchased from the supplier. The
invoice is $1.00 higher than the PO price.
Epicor ERP | 10.0.700.2 79

T-Account Recap: Purchasing Activity
The T-Accounts below pull together all the purchasing-related transactions discussed in this section of the course
and display the total of each account. Review the course Appendix for the inventory account hierarchy.
80 Epicor ERP | 10.0.700.2

Inventory and WIP Activity
Below is a T-Account representation of the flow of dollars that relates to various material transaction types, labor,
and burden charges to WIP.
The previous purchasing activity displayed a logical flow of dollars from receipt to payment; in the following
representation, each transaction set is independent of the others.
1. STK-MTL
Component material is issued from inventory to WIP.
2. STK-UKN
Materials are picked up using Issue Miscellaneous Material or written off using Return Miscellaneous
Material. The offsetting account for both of these procedures is the Inventory Adjustment account defined
in the company's Inventory COS and WIP GL control type, unless the reason code selected has a different
GL control defined on it.
Note Adjusting quantities using these procedures affects usage calculations.
3. STK-STK
Warehouse to warehouse transactions occur to re-identify the warehouse and bin locations of a part. If a
Division GL control was defined on the warehouse, a GL transaction occurs to move dollars between account
numbers; otherwise, net activity is zero.
4. ADJ-QTY
On-hand quantity changes made using Quantity Adjustment, or the posting of a physical (cycle) count,
create ADJ-QTY transactions. The offsetting account for both procedures is the Inventory Adjustment account
defined in the company's Inventory COS and WIP GL control type, unless the reason code selected has a
different expense account defined.
Note Adjusting quantities that use these procedures does not affect usage calculations.
5. ADJ-CST
Increased or decreased unit costs using Cost Adjustments. The offsetting account is the Inventory Adjustment
account defined in the company's Inventory COS and WIP GL control type, unless the Reason Code selected
has a different GL control defined on it.
Epicor ERP | 10.0.700.2 81

6. LABOR
This transaction records labor and burden charged to WIP at a rate higher or lower than standard, due to
efficiencies, labor rate variances, or changes to the method.
7. Job Cost Adjustments

Job cost adjustments are made to increase or decrease the value of material, labor, burden and subcontract
on a job. Job adjustments made to material, subcontract, or labor quantities/hours, without entering a
corresponding cost, have no impact on the general ledger.
a) When cost material is adjusted, the offsetting accounting is the Inventory Adjustments account and no
inventory transactions occur, regardless of whether a quantity was entered.
b) When labor and burden values are adjusted, labor transactions are created using the values entered in
this procedure.
c) When subcontract costs are adjusted, the offsetting accounting is the Inventory Adjustments account
defined in the company's Inventory COS and WIP GL control type.
Job split transactions also generate these transaction types. The cost of the originating job at the moment
is used to calculate the cost assigned to each job. Information about both jobs displays on the Inventory/WIP
Reconciliation Report as well as on the Production Detail Report.
8. STK-ASM
A STK-ASM transaction occurs when a subassembly is issued from inventory to a subassembly requirement
on a job.
Although you can define a subassembly as a non-stock item, it can be stocked (for example, overrun or
make/buy decisions) in inventory for issue to WIP at a later date.
When a subassembly is issued to a job, the Material Labor Burden (MLB) cost becomes 100% material on
the receiving job. All costs are rolled up into the top assembly's material cost.
9. SVG-STK
Salvage is the return of non-consumed components or assemblies from WIP to inventory. Salvage is defined
on the method which has an impact on cost estimates.
82 Epicor ERP | 10.0.700.2

You can determine the value of this transaction type by the value of the part number being salvaged, or
the user can supply it. If the cost method of the part being salvaged is standard, you cannot override the
cost.
10. MFG-WIP
Assemblies are issued from job to job through the job receipt to job procedure.
Average and last unit costs are calculated and displayed; you can manually override transaction costs unless
Standard is selected in the Costing Method field.
Note You can view all inventory-related transactions on the Inventory/WIP Reconciliation Report. This
report is a valuable tool often used to track all transaction types, specific accounts, or jobs.
Epicor ERP | 10.0.700.2 83

T-Account Recap: Inventory and WIP Activity
The T-Accounts below pull together all the inventory and WIP related transactions previously discussed and display
the total of each account.
Finished Goods and COS Activity
This section of the course describes both finished goods and cost of sales-related activities. Again, T-Accounts
are included for each activity.
1. MFG-STK
A job is completed to finished goods inventory. The value of the completion cost depends on the cost method
of the assembly being completed. The example below is standard cost.
Average and last unit costs are calculated and displayed during manufacturing receipt; however, the cost
can be manually overridden. This is not true for standard costed parts.
2. MFG-VAR
Use Job Completion/Closing Maintenance to close a job to further cost transactions. Manufacturing
variances can be the result of standard to actual cost differences or a late-arriving cost to a job that has
been completed to inventory, regardless of cost method.
A late-arriving cost to a job shipped from WIP updates the COS account on the product group, unless the
job is closed. If the job is closed, late-arriving costs are booked to the Variance account defined in the product
group's GL control. If no GL control is defined on the product group, or a Variance account is not defined
in the GL control code specified on the product group, the Variance account from the company's Inventory
COS and WIP GL control type is used.
84 Epicor ERP | 10.0.700.2

3. STK-CUS
Finished goods are shipped to the customer. The value of the shipment depends on the cost method of the
unit being shipped; the example below is standard cost.
If your company is configured to use an A/R Clearing account (the option to use this account is available on
the Modules > Finance > Accounts Receivables > General sheet in Company Configuration and an A/R
Clearing account is defined on the company's Inventory COS and WIP GL control, then shipments do not
update that account until after you execute the Capture COS/WIP Activity.
Once the shipment is invoiced and the Capture COS/WIP activity is processed again, costs disperse from the
A/R Clearing account to their appropriate COS accounts.
4. MFG-CUS
Finished goods are shipped to the customer directly from a job. The value of the shipment depends on the
cost method of the unit being shipped; the example below is standard cost.
If your company is configured to use an A/R Clearing account and one has been defined on the company's
Inventory COS and WIP GL control, then shipments do not update that account until after you execute the
Capture COS/WIP Activity.
Epicor ERP | 10.0.700.2 85

T-Account Recap: Finished Goods and COS Activity
The T-Accounts below pull together all the finished goods and COS activity transactions previously discussed and
display the total of each account.
86 Epicor ERP | 10.0.700.2

Job Costing Course Conclusion
Conclusion
Congratulations! You have completed the Job Costing course.
Epicor ERP | 10.0.700.2 87

Appendix Job Costing Course
Appendix
From this Appendix, you can view the Epicor ERP Inventory Transaction Hierarchy for information on how inventory
transactions find the GL accounts to which they post. You can also find detailed information on the different
manufacturing environments, and view different approaches to resource groups, resources, operations, and
methods.
The Appendix consists of the following topics:
• Epicor ERP Inventory Transaction Hierarchy
• Manufacturing Environments and Strategies
• Recommendations, Considerations, and Approaches
Manufacturing Environments and Strategies

The Epicor application allows for three distinct manufacturing strategies.
• Make to Order
• Make to Stock
• Mixed Mode
Depending on what type of process you use to produce products, a variety of methods can exist. This section
reviews the Make to Order (MTO), Make to Stock (MTS), and Mixed Mode manufacturing strategies as they
pertain to the Epicor application. The workshops focus on the Mixed Mode Manufacturing strategy which uses
a combination of both MTS and MTO.
The Make to Order Environment
In a Make to Order (MTO) environment, a company only manufactures or purchases parts when a job needs
them. No inventory exists in a pure MTO environment. Costing parts in an MTO environment requires a special
job costing process which calculates estimated costs, Work in Process (WIP) costs, and actual (final) costs.
Job costing first estimates and then records the costs accumulated on jobs. Job costs are estimated or actual,
depending on what the company needs. In this section, both estimated and actual costs are examined and
illustrated.
The Epicor application uses two calculation options to generate estimated job costs - the Default Calculation and
the Split Cost Elements Calculation (Split Cost Elements Calculation is discussed in more detail in the Mixed Mode
Manufacturing section).
Both calculations evaluate costing elements to arrive at the estimated cost to produce quantities on each job. In
addition, both calculations use the Method of Manufacture (MOM), various costing rates, estimated production
times, and estimated quantities to arrive at estimated costs for quotes and jobs.
The default job estimate calculation has the most impact on an MTO environment. For that reason, the default
job estimate calculation will now be discussed.
Default Job Estimate Calculation

The default job estimate calculation computes the overall total of job and quote costs. This calculation estimates
job costs by first totaling costs on the bottom level of the MOM and then moving this total to the next higher
level.
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Job Costing Course Appendix
The total cost of the bottom level is added to the total cost of the Bill of Material (BOM) level. This total cost
moves to the next higher level and ultimately, to the final, or highest, assembly level. This value becomes the
total estimated cost on the job or quote.
The following illustration shows the job estimate calculation.
Notice the costs at each level of the BOM are broken out into five categories, or elements, listed below.
1. Material - This tracks the estimated cost of purchased or previously manufactured quantities consumed
during this BOM level. It also tracks the PUR-MTL (purchased materials directly to the job) and comes from
the supplier price list.
2. Labor - This records the estimated cost of setup and production time that can accumulate against this BOM
level.
3. Burden - This records other expenses, such as labor associated with maintenance and utilities, which occurred
during this BOM level.
4. Subcontract - This tracks expenses for part quantities worked on by a supplier and returned to the
manufacturing process.
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5. Material Burden - This estimates other costs (non-labor cost of running machines, import duties, and
freight) accounted for within the job estimate. It is based on the materials associated with the job.
• BOM - Level 1 - The calculation first evaluates the lowest operation level on the method. It determines the
labor cost, burden cost, material cost, subcontract cost, and material burden cost (if a material burden rate
is defined on the part record or if material use is determined by the use of landed costs). These costs are
totaled and the result is the material cost for this operation.
• BOM - Level 2 - The calculation then pulls this total material cost amount up to the next operation level. For
example, if a quantity of two is for material on Operation 40, the cost of this quantity is included in the cost
for Operation 30, the next operation level in the method. The application then adds this amount to the material
cost calculated at this operation level. Once again, it determines the labor, burden, subcontract, and material
burden (if a material burden rate is defined on the part record) costs for this operation. These costs are totaled
and the result is the material cost for this operation.
• BOM - Level 3 - This material cost amount is then moved to the next highest operation level and the process
continues. Building on the previous example, the costs for Operation 30 and Operation 40 are totaled and
then added to the costs on Operation 20. This process moves up throughout all the assembly operations.
• BOM - Level 4 - The total material cost for this assembly is then added to the material cost on the lowest
operation in the next assembly. By working through each operation from last to first, the estimated costs
rollup through the method.
The final estimated cost on the job is the final material cost determined on the highest, or last, assembly.
This cost estimating logic is also used to generate standard cost values for specific parts. This ensures the application
arrives at final estimated cost values through a uniform and accurate process.
Note You can use the Landed Costs functionality to add the costs tracked in the material burden element
to job costs more accurately. This is a purchase order (PO) Receipt Entry function.
Use this function to directly enter the specific import duty, freight, and other indirect amounts accumulated
against a material quantity. If you use Landed Costs, you cannot track calculation of the material burden
rate.
Actual Job Costs

Actual job costs are calculated in the same way as estimated costs. The Epicor application starts with the bottom
level on the method and accumulates the costs as it moves up to the final assembly.
The final actual cost in the material element is the final actual cost of the materials issued to the job, less any
salvage. The source of the data used during calculations changes. Actual labor hours are multiplied against the
labor rates defined for the shop employees who worked on the operation. Material can come from stock at its
costing method's value.
The unit costs defined on PO receipts are multiplied against the actual purchased or subcontract quantity. The
salvage credit is calculated using the actual amount salvaged. If material burden is used, it is calculated as well.
The graphic below represents how the costs for each level on the method is accumulated to obtain the total cost
of the job.
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The Make to Order Manufacturing Strategy
The Make to Order transactional flow is the result of selecting the Non-Stock check box on all parts your company
manufactures or purchases. A Make to Order environment has no inventory stocked since all parts are made
when the order is received. All inventory is purchased to jobs. A job is created for a sales order demand or another
job demand. Estimates can come from the method on a quote or job. All costs and transactions are assigned as
Work in Process (WIP).
In a Make to Order environment:
• Materials are purchased directly to the job that requires them.
• A single job is created for the entire top assembly. Any related subassemblies are considered assembly levels
and are manufactured on the same job as the top assembly. Material and labor are charged to the appropriate
assembly level with the job's method.
• Top assembly jobs are completed with the creation of a customer packing slip which transacts the product
from the job directly to the customer.
• No transaction to a finished goods warehouse is required.
In the flow below, parts never enter a company warehouse. In addition, there is only one job with three
subassemblies. The ordered goods are shipped directly from the job to the customer.
Costing Formula - Make to Order

The cost elements for the Make to Order process are determined by the following data elements. Estimates come
from the job and actuals are gathered as transactions. Elements of the Make to Order costing formula are listed
below.
• Material - Estimates come from job material sequences. In Make to Order environments, this can start at the
quoting process. Actual materials issued can differ.
• Quantity - The quantity of a material is estimated by multiplying the job's Quantity Per Assembly (QPA) by
the quantity to produce. More or less, material can actually be used on the job, either issued from stock or
received on a purchase order (PO).
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• Cost - The estimated cost can come from a request for quote (RFQ), default in from a part's record, or be
entered manually on the method of manufacturing (MOM).
• Labor - Estimated labor comes from the MOM used on the job. If the setup is defined, it is divided by the
costing lot size. Production labor is per each on the MOM. These hours are multiplied by the operation details'
resource or resource group rates. There can be more than one resource on an operation. If this is the case,
the rates are combined. Actual labor is entered in the Manufacturing Execution System (MES) or Labor Entry.
• Burden - Estimates are based on labor in the MOM using the burden rate on the resource or resource group.
Actuals are based on labor entered and still use the resource or resource group rate.
• Subcontract - Any operation flagged as subcontract has its cost multiplied by the production quantity on
the job. Estimates come from data on the job's MOM and actuals are based on the receipt of a subcontract
purchase order line.
• Material Burden - If there is a material burden percent defined on a part, the estimated material burden
equals the material cost multiplied by the burden percent, times the job production quantity.
General Ledger Concepts - Make to Order
General ledger divisions and departments are typical account segments defined in Chart of Account Structure
Maintenance. You can employ these segments to accomplish divisional or departmental posting when they are
used in conjunction with job departments and sites. This course assumes your company is utilizing the standard
posting rules delivered with the application. It also assumes these rules have not been customized.
All inventory and job related transactions in the Epicor application have GL accounts assigned by the GL control
most specific to the transaction. For example, when a part is stocked, the inventory asset account can be determined
by the GL control on the part itself. The part's part class GL control is less specific. Thus, if a part has no GL control
but has a part class GL control, the part class GL control is used to determine the asset account. If the part has
no part class GL control, or if the part class GL control has no inventory account defined, then the default company
GL control is used.
Furthermore, for companies with more than one site, the transaction can be made more specific based on the
GL control held at the site level. The Epicor application's demonstration database uses a Division GL segment.
Standard posting rules indicate to replace the asset account’s division element with the value from the site. If
the resulting GL account exists, it is used instead of the base account.
Note General ledger concepts are covered in the General Ledger course.
The following setup, established by accounting, allow any authorized user to set up a GL control.
Product Group
In Product Group Maintenance, link product group records to a Product Group GL control. The Product Group
GL control type has several account contexts associated with it which are available for definition. This is important
to cost accounting because a GL control selection on a product group record aids in appropriately segregating
inventory or WIP for GL posting and other processes.
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Menu Path
• Financial Management > Accounts Receivable > Setup > Product Group
• Financial Management > Deferred Revenue Accounting > Setup > Product Group
• Material Management > Inventory Management > Setup > Product Group
• Production Management > Engineering > Setup > Product Group
• Production Management > Job Management > Setup > Product Group
• Production Management > Material Requirements Planning > Setup > Product Group
• Sales Management > Configurator Management > Setup > Product Group
• Sales Management > Order Management > Setup > Product Group
• Service Management > Field Service > Setup > Product Group
• Customer Relationship Management > Configurator Management > Setup > Product Group
• Customer Relationship Management > Order Management > Setup > Product Group
Part Class
In Part Class Maintenance, link part classes to a Part Class GL control. The Part Class GL control type has several
account contexts associated with it which are available for definition. This is important to cost accounting because
a GL control selection aids in appropriately segregating inventory for GL posting and in other processes.
Menu Path
• Material Management > Inventory Management > Setup > Part Class
• Material Management > Purchase Management > Setup > Part Class
• Production Management > Engineering > Setup > Part Class
• Production Management > Job Management > Setup > Part Class
• Production Management > Material Requirements Planning > Setup > Part Class
• Production Management > Quality Assurance > Setup > Part Class
• Sales Management > Configurator Management > Setup > Part Class
• Sales Management > Order Management > Setup > Part Class
• Customer Relationship Management > Configurator Management > Setup > Part Class
• Customer Relationship Management > Order Management > Setup > Part Class
Job Department
In Job Department Maintenance, link job department records to both a Department GL control and a Division
GL control. Neither GL control type is mandatory for this record, but when used, they aid in determining appropriate
GL accounts for applied labor and applied burden transactions.
Menu Path
• Production Management > Job Management > Setup > Department
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• Production Management > Quality Assurance > Setup > Department

• Production Management > Scheduling > Setup > Department
The Make to Stock Environment
The Make to Stock (MTS) environment creates parts and issues these parts to manufacturing when material is
needed, according to the job. Inventory exists for MTS parts. Costing an MTS job or product requires a special
costing process which calculates several cost elements involved in the MTS process.
The standard cost of a job or product represents a fixed cost established for each part on its master record. This
cost is typically updated when you use the Costing Workbench to make changes.
In modern cost accounting, the concept of recording historical costs is taken further by allocating a company's
fixed costs over a given period of time to the items produced during that period and recording the result as the
total cost of production. This allows you to use a variety of complex accounting methods to record the full cost
of products necessary in inventory. This is consistent with the principles of GAAP (Generally Accepted Accounting
Principles). It also essentially enables managers to ignore fixed costs and look at the results of each period in
relation to the standard cost for any given product.
Example If a railway coach company normally produces 40 coaches per month and fixed costs are $1,000
per month, then each coach can be said to incur an overhead of $25 ($1,000 divided by 40). Adding this
to the variable costs of $300 per coach produces a full cost of $325 per coach.
This method tends to slightly distort results, but in mass production industries that manufacture one product
line, and where fixed costs are relatively low, the distortion is minor.
Example If the railway coach company makes 100 coaches one month, the unit cost becomes $310 per
coach ($300 + ($1,000 divided by 100)). If the next month the company makes 50 coaches, then the unit
cost becomes $320 per coach ($300 + ($1,000 divided by 50)), a relatively minor difference.
An important part of the standard costing method is a variance analysis which breaks down the variation between
actual costs and standard costs into various components (material cost variation, labor cost variation, and so on).
Managers can then understand why costs are different from what was planned and take appropriate action to
correct the situation.
The Make to Stock Manufacturing Strategy
The transaction flow that follows is the result of clearing the Non-Stock check box on all parts your company
manufactures and purchases. In a Make to Stock environment, you must stock all parts since no parts are made
or directly purchased to a job.
In a Make to Stock environment:
• Materials are purchased to and issued from an inventory warehouse.
• Jobs are created for each subassembly. Job completions are transacted to an inventory warehouse and issued
to a higher level job or are completed directly to the next higher level job.
• A top assembly job is created and completions are transacted to a finished goods warehouse.
• Product is shipped from the finished goods warehouse to the customer.
In this flow, parts are purchased from a supplier to the inventory warehouse and sold to the customer from the
finished goods warehouse. All the jobs that occur in between eventually end up together in a top assembly job.
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Costing Formula - Make to Stock

The costing formula for a Make to Stock standard cost item is the same as for a Make to Order item, but the
method comes from the approved revision. The transaction flow can result in manufacturing variances not seen
in Make to Order.
Parts come from stock at their costing method value. Labor times are logged on the MOM. These costs are also
attached to the job as the estimate. If a cost rollup has not been performed, there will be variances.
Manufacturing Variance Transaction Types

• MFG-VAR Transaction 1 - This transaction records a manufacturing variance for a Make to Stock job when
the costs relieved from WIP are greater than the actual job costs.
• MFG-VAR Transaction 2 - This transaction records a manufacturing variance for a Make to Stock job when
the costs relieved from WIP are less than the actual job costs.
Additionally, with standard cost items, inventory is brought in at standard value. If WIP differs from that, a
manufacturing variance is created based on actual values versus standard values.
General Ledger Concepts - Make to Stock
The posting rules for Make to Stock jobs use WIP rules, similar to Make to Order. Since inventory is issued, the
credit account is determined by the part's GL control. The cost of goods posting is dependent on the part's
costing method. Additionally, Make to Stock on standard cost items typically results in manufacturing variances.
These rules are associated with the manufactured part's Product Group.
The transaction flow for Make to Stock works the same as Make to Order but has additional transactions such
as receiving to stock (refer to the Transaction Analysis section).
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The Mixed Mode Manufacturing Environment
Realistically, most companies utilize a mixed mode methodology to manufacture products. These companies
manufacture jobs that are Make to Order and others that are Make to Stock. Epicor handles various costing and
production methods which can be done in a variety of combinations. For example, a company may make large
pieces of equipment to order but manufacture their replacement parts to stock.
The Mixed Mode Manufacturing Strategy
The transaction flow below is the result of selecting the Non-Stock check box on some parts your company
manufactures or purchases.
In a Mixed Mode Manufacturing environment:
• Materials are purchased directly to the jobs that require them as well as purchased to inventory warehouses
and issued to jobs.
• Both Make to Stock and Make to Order jobs are created for top assemblies as well as any subassembly level.
• Job completions can be transacted to and from warehouses or higher level jobs as well as directly from jobs
to customers.
Split Cost Elements Calculation

In a Mixed Mode Manufacturing environment, the split cost elements calculation is important. When selected,
the split cost calculation setting totals costing elements independently throughout the MOM to arrive at separate
material, labor, burden, subcontract, and material burden (if used) values for the highest level assembly. Because
the calculation keeps these values in separate costing elements, use the Job Tracker to view more specific job
analysis results.
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To activate the split cost elements calculation, select the Enable Mfg Cost Elements check box on the Modules
> Production > Job sheet in Company Configuration. All jobs you create after you select this check box use
the split cost elements calculation; all jobs you create before you select this check box use the default calculation.
This method is similar to the default calculation, as it starts at the lowest assembly on the MOM and moves up
to the final, or highest, assembly level. In contrast, the costing elements are not totaled into the material cost on
the next level. Instead, each costing element is added directly to the next level's distinct costing element.
The following illustration shows the split cost elements calculation.
In a pure Make to Stock environment, all lower level manufactured parts always pull in as material only and then
are separated into individual cost elements. The split cost elements calculation setting does not impact these
parts in this environment.
In a pure Make to Order environment, all lower level manufactured parts use elemental costing because they are
built as subassemblies within a single job, so again, this setting does not impact these parts in this environment.
In a Mixed Mode Manufacturing environment, you have lower level manufactured parts that are both stock and
non-stock. If you do not select the Enable Mfg Cost Elements check box in this type of environment, the stock
parts cost as material only and the non-stock parts use elemental costing. Select the Enable Mfg Cost Elements
check box in Company Configuration to enable all lower level manufactured parts to use elemental costing.
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Recommendations, Considerations, and Approaches

Multiple approaches to resource groups, resources, operations, and methods exist. Each of these approaches
impacts scheduling, costing, engineering, and job management. This section details some of the possibilities
available when you use the Epicor application.
From a scheduling perspective, attaching operations to resource groups, as opposed to resources, provides the
most flexibility. Use the Mass Resource Group Replace process in the General Operations folder of the
Engineering module to change a resource group. This process goes through the methods and swaps out one
resource group for another. There is no mass replace process for resources alone, so method maintenance is
manual.
If your company typically does not use scheduling or it uses scheduling but everything is scheduled infinitely,
Epicor recommends you review the expanded functionality to not lock your company down with an inflexible
setup.
Resource groups that only have one resource are a great place to start. This setup allows for growth and future
functionality. If the operations are attached to the resource group, you can easily add additional resources as
necessary and automatically increase capacity at the group level, making the resources available without changing
the methods of manufacturing.
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Approach 1: Resource Group Specific
In this example, there are three interchangeable, or generic, shearing machines in the Shear resource group. Each
shearing machine was added as a resource to the Shear resource group. Since you can use one of the shearing
machines when you perform the operation for this job, you only need the resource group on the method of
manufacturing for that job. Labor and burden costs are defined only on the resource group and represent an
average of the costs related to each.
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Approach 2: Resource Specific
In this example, resources are not interchangeable. The setup depicted here shows an operation that calls for a
specific resource in the resource group. This approach works as long as your company has no expected expansion,
does not use the Scheduling module, or schedules the resources infinitely. If your company expects expansion in
the future and does not schedule the resources infinitely, review the considerations below.
Note If the resource group is selected on the method instead of the 8’ shear, the labor and overhead
values defined on the resource group are used for the job cost estimate. The values defined on the resource
group should be an average of the values defined on the resources in case only the resource group is pulled
into the method.
Considerations
In the example described above, it is difficult to add resources that become available. For instance, your company
purchases an additional 8' shear you can also use for this operation, or one like it. The new shear is not referred
to on the methods of manufacture without manually changing one or more methods to include this new resource.
To avoid manually changing methods, create a 4' Shear group, an 8' Shear group, and a 12' Shear group, each
containing one shear. Next, attach the appropriate Shear group to the operation. If, and when, you purchase
another 8' shear, you can add it to the 8' group, which in turn, doubles the capacity of that group. In addition,
both resources in the 8' group are automatically available without changing the MOM.
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Approach 3: Multiple Resource Groups or Resources
In this example for a Milling operation, a specific machine and specific skill set are required. Instead of defining
a single resource group with machine and skill set resources related to it, two resource groups are defined -
Milling Machine, with resources for specific machines, and Mill Work Force, with resources for specific skill sets.
Machine resources can be available 24 hours a day, seven days a week; therefore, you can schedule them infinitely.
The workforce may work a single shift and be scheduled finitely. Labor and burden costs are both defined on
the workforce resource group, and burden only is defined on the machine resource group. Values for each
accumulate to arrive at a job cost estimate total. Like the last approach, this approach works as long as your
company has no expected expansion, does not use the Scheduling module, or schedules the resources infinitely.
If your company expects expansion in the future and does not schedule the resources infinitely, review the
considerations below.
Considerations
Since both the Milling Machine group and the Mill Work Force group contain resources that are not
interchangeable, the method of manufacturing must point to the resource, which makes adding additional
resources later a time-consuming task. To use added resources on a method of manufacturing, you must manually
update the method of manufacturing to use the new resource.
An alternate approach is to have, for example, a CNC Auto group and a CNC Semi-Auto group in addition to
an Apprentice Mill Work Force group and a Skilled Mill Work Force group. Even if you start with a single resource
in each of these groups, you are still setting up the environment for less complicated updates when you add
resources.
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Approach 4: Multiple Resource Groups or Resources used with the Advanced Planning
and Scheduling Module
In this example, not only are the machines and skill sets defined in their own resource groups, but resource groups
for Fixtures are defined as well. The Fixtures resource group contains resources for tools you may also need to
schedule. The method of manufacture defines three operation details; more than two operation details are
allowed only if the Advanced Planning and Scheduling (APS) module is licensed and enabled.
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Epicor 10.00 Standard Posting Rules - Inventory Transaction Hierarchy - Inventory Interfaced
Tran Type Description Debit Credit
ADJ-CST Decrease the cost of a part 1) Reason code GL control 1) Part GL control
Manual cost adjustment or Costing Workbench / Cost Rollup 2) Inventory Adjustment account from Company's Inventory COS and WIP GL 2) Inventory account from Part Class Gl control
control
If Division segment is used, the segment value comes from warehouse GL 3) Inventory account from Company's Inventory COS and WIP GL control
control then plant GL control, then 1 or 2
If Division segment is used, the segment value comes from warehouse GL
ADJ-CST Increase the cost of a part 1) Part GL control 1) Reason code GL control
Manual cost adjustment or Costing Workbench / Cost Rollup 2) Inventory account from Part Class GL control 2) Inventory Adjustment account from Company's Inventory COS and WIP
GL control
3) Inventory account from Company's Inventory COS and WIP GL control If Division segment is used, the segment value comes from warehouse GL
control then plant GL control, then 1, 2, or 3
ADJ-CST PO Receipt of standard costed item - PO Cost > Standard 1) Purchase Price Variance account from Part Class GL control 1) Part GL control
Note: Full PO Cost hits inventory account and AP clearing difference adjusted 2) Inventory Adjustment account from Company's Inventory COS and WIP GL 2) Inventory account from Part Class GL control
using ADJ-CST transaction control
If Division segment is used, the segment value comes from warehouse GL 3) Inventory Account from Company's Inventory COS and WIP GL control
control, then plant GL control, then Company's Inventory COS and WIP GL
control
ADJ-CST PO Receipt of standard costed item - PO Cost < Standard 1) Part GL control 1) Purchase Price Variance account from Part Class GL control
Note: Full PO Cost hits Inventory account and AP clearing difference adjusted 2) Inventory account from Part Class GL control 2) Inventory Adjustment account from Company's Inventory COS and WIP
using ADJ-CST transaction GL control
control , then plant GL control, then Company's Inventory COS and WIP
GL control
ADJ-CST Some transactions involving non-standard costed parts automatically

create ADJ-CST transactions to make the Stock Status report match the GL
Inventory value.
ADJ-DRP Records any adjustment of any standard cost variances when the supplier's invoice 1) Purchase Price Variance account from Part Class GL Control 1) Expense account from Part GL Control
is less than the original purchase order for drop-shipments.
2) Variance account from AP Invoice AP Account GL Control 2) Drop Shipment account from Part Class GL Control
3) Variance account from Company's Inventory COS and WIP GL Control 3) Drop Shipment account from Company's Inventory COS and WIP GL
Control
If Division segment is used, the segment value comes from warehouse GL If Division segment is used, the segment value comes from warehouse GL
control , then plant GL control, then 1, 2, or 3 control , then plant GL control, then 1, 2, or 3
ADJ-DRP Records any adjustment of any standard cost variances when the supplier's invoice 1) Expense account from Part GL Control 1) Purchase Price Variance account from Part Class GL Control
is greater than the original purchase order for drop-shipments.
2) Drop Shipment account from Part Class GL Control 2) Variance account from AP Invoice AP Account GL Control
3) Drop Shipment account from Company's Inventory COS and WIP GL Control 3) Variance account from Company's Inventory COS and WIP GL Control
If Division segment is used, the segment value comes from warehouse GL If Division segment is used, the segment value comes from warehouse GL
control , then plant GL control, then 1, 2, or 3 control , then plant GL control, then 1, 2, or 3
Page 1

ADJ-MTL Decrease material cost on a manufacturing job 1) Inventory Adjustment account from Company's Inventory COS and WIP GL 1) WIP Material account from the job's Product Group's GL control
control
If Division segment is used, the segment value comes from Company 2) WIP Material from Company's Inventory COS and WIP GL control
Note: If MTL Burden Cost adjusted WIP Material Burden Account is
also credited
If Division segment is used, the segment value comes from Plant GL
control then 1 or 2
ADJ-MTL Increase material cost on a manufacturing job 1) WIP Material account from job's Product Group's GL control 1) Inventory Adjustment account from Company's Inventory COS and WIP
GL control
2) WIP Material account from Company's Inventory COS and WIP GL control If Division segment is used, the segment value comes from account
Note: If MTL Burden Cost adjusted WIP Material Burden account is also
debited.
If Division segment is used, the segment value comes from Plant GL control
then 1 or 2.
ADJ-PUR Difference between PO price and invoice price for 1) Purchase Price Variance account from Part Class GL control 1) Clearing account from Company's AP Account GL control
item received to stock (invoice price higher) 2) Variance account from Company's AP Account GL control 2) Clearing account from Company's Inventory COS and WIP GL control
3) Variance account from Company's Inventory COS and WIP GL control If Division segment is used, the segment value comes from account
If a Division segment is used, the If Division segment is used, the segment value
comes from Warehouse GL control, then Plant GL control, then account
ADJ-PUR Difference between PO price and invoice price for 1) Clearing account from Company's AP Account GL control 1) Purchase Price Variance account from Part Class GL control
item received to stock (PO price higher) 2) Clearing account from Company's Inventory COS and WIP GL control 2) Variance account from Company's AP Account GL control
If Division segment is used, the segment value comes from account 3) Variance account from Company's Inventory COS and WIP GL control
If Division segment is used, the If Division segment is used, the segment

value comes from Warehouse GL control, then Plant GL control, then
account
ADJ-PUR Difference between PO price and invoice price for material 1) WIP Material account from job's Product Group's GL control 1) Clearing account from Company's AP Account GL control
received to a manufacturing job (invoice price higher) 2) WIP Material account from Company's Inventory COS and WIP GL control 2) Clearing account from Company's Inventory COS and WIP GL control
If Division segment is used, the segment value comes from Plant GL control If Division segment is used, the segment value comes from account
then 1 or 2.
ADJ-PUR Difference between PO price and invoice price for material 1) Clearing account from Company's AP Account GL control 1) WIP Material account from job's Product Group's GL control
received to a manufacturing job (PO price higher) 2) Clearing account from Company's Inventory COS and WIP GL control 2) WIP Material account from Company's Inventory COS and WIP GL
control
If Division segment is used, the segment value comes from account If Division segment is used, the segment value comes from Plant GL
control then 1 or 2.
ADJ-PUR Difference between PO price and invoice price for subcontract 1) WIP Subcontract account from job's Product Group's GL control 1) Clearing account from Company's AP Account GL control
received to a manufacturing job (invoice price higher) 2) WIP Subcontract account from Company's Inventory COS and WIP GL 2) Clearing account from Company's Inventory COS and WIP GL control
control
then 1 or 2.
Page 2

ADJ-PUR Difference between PO price and invoice price for subcontract 1) Clearing account from Company's AP Account GL control 1) WIP Subcontract account from job's Product Group's GL control
received to a manufacturing job (PO price higher) 2) Clearing account from Company's Inventory COS and WIP GL control 2) WIP Subcontract account from Company's Inventory COS and WIP GL
control
ADJ-PUR Job Miscellaneous Line added to a manufacturing job in AP Invoice Entry 1) WIP Material account from job's Product Group's GL control 1) Clearing account from Company's AP Account GL control
2) WIP Material account from Company's Inventory COS and WIP GL control 2) Clearing account from Company's Inventory COS and WIP GL control
then 1 or 2.
ADJ-PUR Job Miscellaneous Line added to a manufacturing job in AP Debit Memo Entry 1) Clearing account from Company's AP Account GL control 1) WIP Material account from job's Product Group's GL control
2) Clearing account from Company's Inventory COS and WIP GL control 2) WIP Material account from Company's Inventory COS and WIP GL
control
ADJ-QTY Decrease the quantity on hand of a part 1) Reason code GL control 1) Part GL control
2) Inventory Adjustment account from Company's Inventory COS and WIP GL 2) Inventory account from Part Class Gl control
control
control then plant GL control, then 1 or 2.
If Division segment is used, the segment value comes from Warehouse
GL control, then Plant GL control, then 1, 2 or 3.
ADJ-QTY Increase the quantity on hand of a part 1) Part GL control 1) Reason code GL control
2) Inventory account from Part Class GL control 2) Inventory Adjustment account from Company's Inventory COS and WIP
GL control
If Division segment is used, the segment value comes from Warehouse GL
control, then Plant GL control, then 1, 2 or 3
ADJ-SUB Decrease subcontract cost on a manufacturing job 1) Inventory Adjustment account from Company's Inventory COS and WIP GL 1) WIP Subcontract account from job's Product Group's GL control
control
If Division segment is used, the segment value comes from account 2) WIP Subcontract account from Company's Inventory COS and WIP GL
control
ADJ-SUB Increase subcontract cost on a manufacturing job 1) WIP Subcontract account from job's Product Group GL control 1) Inventory Adjustment account from Company's Inventory COS and WIP
GL control
2)WIP Subcontract account from Company's Inventory COS and WIP GL control If Division segment is used, the segment value comes from account
If Division segment is used, the segment value comes from Plant GL control
then 1 or 2
ASM-INS 1) Reporting discrepant quantity on labor transaction ****No GL Entry Created**** ****No GL Entry Created****
2) Creating a First Article
3) Creating a non-conformance for type Assembly
Note: Will have the option to move costs to DMR during inspection
AST-STK Records transfers of asset costs to stock (used for asset disposal transactions) 1) Part GL Control 1) Asset Clearing account from Company's Asset GL Control
2) Inventory Account from Part Class GL Control
3) Inventory Account from Company's Inventory COS and WIP GL Control

Control, Plant GL control then 1 ,2 or 3
Page 3

DMR-ASM Receipt of DMR assembly to a manufacturing job 1) WIP Elements from Product Group GL control 1) DMR Account from Part Class GL control
2) WIP Elements from Company's Inventory COS and WIP GL control 2) DMR Account from Company's Inventory COS and WIP GL control
For the following types of DMR's, a GL entry will only be made if the user If Division segment is used, the segment value comes from Plant GL control If Division segment is used, the segment value comes from Plant GL
selected the Move Cost to DMR check box when sending the item from then 1 or 2. control then 1 or 2.
inspection to DMR (See INS-DMR);
1) Reporting discrepant quantity on a labor transaction
2) Creating a First Article
4) Creating a non-conformance for type Subcontract
DMR-MTL Receipt of Job Material from DMR to a manufacturing job 1) WIP Elements from job's Product Group's GL control 1) DMR Account from Part Class GL control
2) WIP Elements account from Company's Inventory COS and WIP GL control 2) DMR account from Company's Inventory COS and WIP GL control
If Division segment is used, the segment value comes from Plant GL control If Division segment is used, the segment value comes from Plant GL
then 1 or 2. control then 1 or 2.
DMR-REJ Rejecting a DMR 1) DMR Reason Code GL control 1) DMR Account from Part Class GL control
2) DMR Write Off account from Part Class GL control 2) DMR Account from Company's Inventory COS and WIP GL control
For the following types of DMR's, a GL entry will only be made if the user 3) DMR Write Off account from Company's Inventory COS and WIP GL control If Division segment is used, the segment value comes from Plant GL
selected the Move Cost to DMR check box when sending the item from control then 1 or 2.
inspection to DMR (See INS-DMR);
1) Reporting discrepant quantity on a labor transaction If item came from WIP, and a Division segment is used, the segment value
comes from Plant GL control then 1, 2 or 3.
2) Creating a First Article If item came from Inventory and a Division segment is used, the segment value
comes from warehouse, plant then 1, 2 or 3.
DMR-STK Receipt from DMR to Stock 1) Part GL control 1) DMR Account from Part Class GL control
2) Inventory account from Part Class GL control 2) DMR account from Company's Inventory COS and WIP GL control
control, then Plant GL control, then 1, 2 or 3
DRP-CUS Records shipment transactions for drop-shipments to customers (for non part master 1) COS Elements from Product Group GL control 1) Part GL control
parts and non standard cost part master parts)
2) COS Elements from Company's inventory COS and WIP GL control 2) Inventory account from Part Class GL control
control then plant GL control
If Department segment is used and a Sales Category is selected the department If Division segment is used, the segment value comes from Warehouse
segment is overridden with the Sales Category Dept GL control, then Plant GL control, then 1, 2, or 3.
DRP-CUS Records shipment transactions for drop-shipments to customers (for standard cost 1) COS Elements from Intercompany AR Account GL control 1) Part GL control
part master parts)
If Division segment is used, the segment value comes from warehouse GL 2) Inventory account from Part Class GL control
If Department segment is used and a Sales Category is selected the department 3) Inventory account from Company's Inventory COS and WIP GL control
segment is overridden with the Sales Category Dept
GL control, then Plant GL control, then 1, 2, or 3.
Page 4

INS-ASM Passing inspection: ****No GL Entry Created**** ****No GL Entry Created****
1) Discrepant quantity back to a job
2) A First Article back to a job
3) A non-conformance for type Assembly
4) A non-conformance for type Subcontract
INS-DMR Failing a non-conformance for a manufacturing job that came from: 1) DMR Account from Part Class GL control 1) WIP Elements from Product Group GL control
1) First Article entry 2) DMR account from Company's Inventory COS and WIP GL control 2) WIP Elements from Company's Inventory COS and WIP GL control
2) Discrepant quantity reported on a labor transaction If Division segment is used, the segment value comes from Plant GL control If Division segment is used, the segment value comes from Plant GL
3) A non-conformance created for type Assembly
4) A non-conformance created for type Subcontract
Note: Will only create a GL entry if Move Cost To DMR check box is selected
INS-DMR Failing an RMA through RMA Disposition in Epicor 9 installations with QA Module 1) DMR Account from Part Class GL control 1) Cost of Returns account from Product Group Gl control
***See INS-REJ for Epicor 9 installations without the QA module 2) DMR account from Company's Inventory COS and WIP GL control 2) Cost of Returns account from Company's Inventory COS and WIP GL
control
If Division segment is used, the segment value comes from Plant GL control If Division segment is used, the segment value comes from 1 then 2.
then 1 or 2.
Note: Sales Category's Department is currently not used for COR
account determination
INS-DMR Failing other transaction types than above. 1) DMR Account from Part Class GL control 1) Inspection account from Part Class GL control
2) DMR account from Company's Inventory COS and WIP GL control 2) Inspection account from Company's Inventory COS and WIP GL control
If Division segment is used, the segment value comes from warehouse, plant If Division segment is used, the segment value comes from warehouse GL
then 1 or 2. control then plant GL control
INS-MTL Receipt of material from inspection to a manufacturing job 1) WIP Material account from job's Product Group's GL control 1) Inspection account from Part Class GL control
2) WIP Material account from Company's Inventory COS and WIP GL control 2) Inspection account from Company's Inventory COS and WIP GL control
If Part has Mtl Burden Rate: If Division segment is used, the segment value comes from Plant GL
1) WIP Mtl Burden account from job's Product Group's GL control
2) WIP Mtl Burden account from Company's Inventory COS and WIP GL control
Division for both comes from plant then 1 or 2.
INS-MTL Disposition of an RMA to a manufacturing job material 1) WIP Material account from job's Product Group's GL control 1) Cost of Returns account from Product Group GL control
2) WIP Material account from Company's Inventory COS and WIP GL control 2) Cost of Returns account from Company's Inventory COS and WIP GL
control
If Part has Mtl Burden Rate: If Division segment is used, the segment value comes from 1 or 2.
2) WIP Mtl Burden account from Company's Inventory COS and WIP GL control
Division for both comes from plant then 1 or 2.
INS-REJ Failing an RMA through RMA Disposition in Epicor 9 installation 1) DMR Write Off account from Part Class 1) Cost of Returns account from Product Group GL control
without QA module 2) DMR Write Off account from Company's Inventory COS and WIP GL control 2) Cost of Returns account from Company's Inventory COS and WIP GL
control
If Division segment is used, the segment value comes from Plant GL control If Division segment is used, the segment value comes from 1 then 2.
then 1 or 2.
Note: Sales Category's Department is currently not used for COR
account determination
Page 5

INS-SUB Receipt of subcontract from an inspection to a manufacturing job 1) WIP Subcontract account from job's Product Group's GL control 1) Inspection account from part's Part Class's GL control
2) WIP Subcontract account from Company's Inventory COS and WIP GL 2) Inspection account from Company's Inventory COS and WIP GL control
control
then 1 or 2 control then 1 or 2.
INS-STK Receipt of part from inspection to inventory 1) Part GL control 1) Inspection account from Part Class GL control
2) Inventory account from Part Class Gl control 2) Inspection account from Company's Inventory COS and WIP GL control
control, then Plant GL control, then 1, 2 or 3.
INS-STK Receipt of part from RMA to stock 1) Part GL control 1) Cost of Returns account from Product Group GL control
2) Inventory account from Part Class Gl control 2) Cost of Returns account from Company's Inventory COS and WIP GL
control
INVOICE NON INTER-COMPANY CUSTOMER 1) COS Elements from Product Group GL control 1) AR Clearing account from Company's Inventory COS and WIP GL
control
Transaction created when using AR Clearing functionality 2) COS Elements from Company's Inventory COS and WIP GL control If Division segment is used, the segment value comes from account
set up in AR Config by populating the AR Clearing Account If Division segment is used, the segment value comes from warehouse GL
***Not a valid transaction for FS service call, service contract, & warranty
invoice see transaction type MFG-CUS***
KIT-CUS Shipment of sales kit 1) COS Elements from Product Group GL control for the kit parent item 1) Inventory account from Part GL control for the kit parent item
2) COS Elements from from Default Inventory COS/WIP for the kit parent item 2) Inventory account from Part Class GL control for the kit parent item
If Division segment is used, the segment value comes from warehouse GL 3) Default Inventory COS/WIP Inventory account for the kit parent item
If Sales Category is used, and a department segment is used, the segment If Division segment is used, the segment value comes from Warehouse
value comes from the Sales Category Dept GL control, then Plant GL control, then 1, 2 or 3.
LABOR Labor reported against a manufacturing job 1) WIP Labor and Burden accounts from job's Product Group's GL control CHART (Natural Account segment)
2) WIP Labor and Burden accounts from Company's Inventory COS and WIP GL 1) Applied Labor & Applied Burden accounts from Company's Inventory
control COS and WIP GL control
If Division segment is used, the segment value comes from Plant GL control DIVISION (segment of account)
then 1 or 2.
1) Plant GL control
2) Applied Labor & Applied Burden accounts from Company's Inventory
COS and WIP GL control
DEPARTMENT (segment of account)
1) JC Department assigned to Resource Group
LABOR Job Adjustment to increase labor cost on a manufacturing job 1) WIP Labor and Burden accounts from job's Product Group's GL control CHART (Natural Account segment)
2) WIP Labor and Burden accounts from Company's Inventory COS and WIP GL 1) Applied Labor & Applied Burden accounts from Company's Inventory
control COS and WIP GL control
If Division segment is used, the segment value comes from Plant GL control DIVISION (segment of account)
then 1 or 2
1) Plant GL control
Page 6

LABOR Job Adjustment to decrease labor cost on a manufacturing job CHART (Natural Account segment) 1) WIP Labor and Burden accounts from job's Product Group's GL control
1) Applied Labor & Applied Burden accounts from Company's Inventory COS 2) WIP Labor and Burden accounts from Company's Inventory COS and
and WIP GL control WIP GL control
DIVISION (segment of account) If Division segment is used, segment value comes from Plant GL control then 1 or
1) Plant GL control 2.
2) Applied Labor & Applied Burden accounts from Company's Inventory COS
and WIP GL control
2) Applied Labor & Applied Burden accounts from Company's Inventory COS
and WIP GL control
MFG-CUS Shipment from a manufacturing job to a non Inter-Company Customer 1) COS Elements from Product Group GL control 1) WIP Elements from Product Group GL control on job
2) COS Elements from Company's Inventory COS and WIP GL control 2) WIP Elements from Company's Inventory COS and WIP GL control
If Department segment is used and a sales category was selected on the order,
the COS department will be overridden with Department of Sales Category
MFG-CUS Shipment from a manufacturing job to an Inter-Company Customer 1) COS Elements from Inter-Company AR Account 1) WIP Elements from Product Group GL control on job
If Division segment is used, the segment value comes from warehouse GL 2) WIP Elements from Company's Inventory COS and WIP GL control
MFG-PLT Receipt of job from one plant to a warehouse or job in another plant 1) In-transit account from plant's Transfer Definition 1) WIP Elements from job's Product Group's GL control
(1st half of transaction - see PLT-STK, PLT-ASM or PLT-MTL for second half) If Division segment is used, the segment value comes from account 2) WIP Elements from Company's Inventory COS and WIP GL control
control then 1 or 2
MFG-STK Receipt of part from a job to stock 1) Part GL control 1) WIP Elements from Product Group GL control on job
2) Inventory account from Part Class Gl control 2) WIP Elements from Company's Inventory COS and WIP GL control
3) Inventory account from Company's Inventory COS and WIP GL control If Division segment is used, the segment value comes from Plant GL
MFG-VAR Manufacturing Variance for make to order job / NOT a standard costed part / where 1) WIP Elements from job's Product Group's GL control 1) COS Elements from job's Product Group's GL control
costs relieved from WIP are greater than actual job costs
2) WIP Elements from Company's Inventory COS and WIP GL control 2) COS Elements from Company's Inventory COS and WIP GL control
If Department segment is used and a sales category was selected on the
order, the COS department will be overridden with Department of Sales
Category
MFG-VAR Manufacturing variance for make to order job / NOT a standard costed part / where 1) COS Elements from job's Product Group's GL control 1) WIP Elements from job's Product Group's GL control
costs relieved from WIP are less than actual job cots
2) COS Elements from Company's Inventory COS and WIP GL control 2) WIP Elements from Company's Inventory COS and WIP GL control
Page 7

MFG-VAR Manufacturing Variance for make to order job / standard costed part / costs relieved 1) WIP Elements from job's Product Group's GL control 1) COS Elements from job's Product Group's GL control
from WIP greater than actual job costs
***Job Configuration - Direct Ship Standard Cost Job Variances set to Post to 2) WIP Elements from Company's Inventory COS and WIP GL control 2) COS Elements from Company's Inventory COS and WIP GL control
Cost of Sales***
If Department segment is used and a sales category was selected on the
order, the COS department will be overridden with Department of Sales
Category
MFG-VAR Manufacturing Variance for make to order job / standard costed part / costs relieved 1) WIP Elements from job's Product Group's GL control 1) Variance Account from job's Product Group's GL control
from WIP greater than actual job costs
***Job Configuration - Direct Ship Standard Cost Job Variances set to Post to 2) WIP Elements from Company's Inventory COS and WIP GL control 2) Variance account from Company's Inventory COS and WIP GL control
Product Group***
then 1 or 2.
MFG-VAR Manufacturing Variance for make to order job / standard costed part / costs relieved 1) COS Elements from job's Product Group's GL control 1) WIP Elements from job's Product Group's GL control
from WIP are less than actual job costs
***Job Configuration - Direct Ship Standard Cost Job Variances set to Post to 2) COS Elements from Company's Inventory COS and WIP GL control 2) WIP Elements from Company's Inventory COS and WIP GL control
Cost of Sales***
MFG-VAR Manufacturing Variance for make to order job / standard costed part / costs relieved 1) Variance Account from job's Product Group's GL control 1) WIP Elements from job's Product Group's GL control
from WIP are less than actual job costs
***Job Configuration - Direct Ship Standard Cost Job Variances set to Post to 2) Variance account from Company's Inventory COS and WIP GL control 2) WIP Elements from Company's Inventory COS and WIP GL control
Product Group***
MFG-VAR Manufacturing variance for make to stock job where costs relieved from WIP are 1) WIP Elements from job's Product Group's GL control 1) Variance Account from job's Product Group's GL control
greater than actual job costs
2) WIP Elements from Company's Inventory COS and WIP GL control 2) Variance account from Company's Inventory COS and WIP GL control
then 1 or 2.
MFG-VAR Manufacturing variance for make to stock job where costs relieved from WIP are 1) Variance Account from job's Product Group's GL control 1) WIP Elements from job's Product Group's GL control
less than actual job costs
2) Variance account from Company's Inventory COS and WIP GL control 2) WIP Elements from Company's Inventory COS and WIP GL control
MFG-VEN Shipment to a subcontractor ****No GL Entry Created**** ****No GL Entry Created****
MFG-WIP Receipt of a part manufactured on one job (source job) to another job (target job) via 1) WIP Material account from target job's Product Group's GL control 1) WIP Elements from source job's Product Group's GL control
the Make Direct flag within the SAME PLANT
2) WIP Material account from Company's Inventory COS and WIP GL control 2) WIP Elements from Company's Inventory COS and WIP GL control
Page 8

MTL-INS Creating a non-conformance for a manufacturing job material 1) Inspection account from Part Class GL control 1) WIP Material account from job's Product Group's GL control
2) Inspection account from Company's Inventory COS and WIP GL control 2) WIP Material account from Company's Inventory COS and WIP GL
control
If Division segment is used, the segment value comes from Plant GL control If Part has Mtl Burden Rate:
then 1 or 2
2) WIP Mtl Burden account from Company's Inventory COS and WIP GL
control
Division for both comes from the plant then 1 or 2.
PLT-ASM 2nd half of Transfer of Inventory from Plant A Warehouse 1) WIP Material account from the job's Product Group's GL control 1) In-Transit Account from Transfer Definition
Plant B Job (See STK-PLT or MFG-PLT for 1st half of transaction) 1a) WIP Material from Company's Inventory COS and WIP GL control
Division from plant than 1 or 2
If plant GL divisions are different, these transfer definition accounts are If plant GL divisions are different, these transfer definition accounts
also debited: are also credited:
2) Transfer AR Account from Transfer Definition 2) Transfer AP Account from Transfer Definition
3) Contra AP Account from Transfer Definition 3) Contra AR Account from Transfer Definition
If Division segment is used, the segment value comes from consolidation If Division segment is used, the segment value comes from consolidation
division division
4) Sales Account from Product Group GL control 4) COS account from Product Group GL control
4a) Sales Account from AR Account GL control 4a) COS account from Company's Inventory COS and WIP GL control
4b) Sales Account from Company's AR Account GL control 4b) Contra COS Account from Transfer Definition
4c) Contra Revenue Account from Transfer Definition If Division segment is used, the segment value comes from consolidation
division
If Division segment is used, the segment value comes from consolidation 5) Sales Account from Product Group GL control
division
5) COS account from Product Group GL control 5a) Sales Account from AR Account GL control
5a) COS account from Company's Inventory COS and WIP GL control 5b) Sales Account from AR comfit
If Division segment is used, the segment value comes from plant If Division segment is used, the segment value comes from plant
PLT-ASM 2nd half of Transfer of Inventory from Plant A Job linked to 1) WIP Material account from the job's Product Group's GL control 1) In-Transit Account from Transfer Definition
Plant B Job (See STK-PLT or MFG-PLT for 1st half of transaction) 1a) WIP Material from Company's Inventory COS and WIP GL control
2) Transfer AR Account from Transfer Definition 2)Transfer AP Account from Transfer Definition
division division
division
division
5a) COS account from Company's Inventory COS and WIP GL control 5b) Sales Account from Company's AR Account GL control
Page 9

PLT-MTL 2nd half of Transfer of Inventory from Plant A Warehouse 1) WIP Material account from the job's Product Group's GL control 1) In-Transit Account from Transfer Definition
Plant B Job (See STK-PLT for 1st half of transaction) 1a) WIP Material from Company's Inventory COS and WIP GL control
2) Transfer AR Account from Transfer Definition 2) Transfer AP Account from Transfer Definition
division division
division
division
5a) COS account from Company's Inventory COS and WIP GL control 5b) Sales Account from Company's AR Account GL control
PLT-STK 2nd half of Transfer of Inventory from Plant A/Whse A to 1) Part GL control 1) In-Transit Account from Transfer Definition
Plant B/Whse B (See STK-PLT for 1st half of transaction) 1a) Inventory account from Part Class Gl control 2) Transfer AP Account from Transfer Definition
1b) Inventory account from Company's Inventory COS and WIP GL control 3) Contra AR Account from Transfer Definition
***If plant GL divisions are the same STK-STK transaction is used instead of If Division segment is used, the segment value comes from warehouse B then If Division segment is used, the segment value comes from consolidation
STK-PLT and PLT-STK*** plant B division
2) Transfer AR Account from Transfer Definition 4) COS account from Product Group GL control
3) Contra AP Account from Transfer Definition 4a) COS account from Company's Inventory COS and WIP GL control
If Division segment is used, the segment value comes from consolidation 4b) Contra COS Account from Transfer Definition
division
4) Sales Account from Product Group GL control If Division segment is used, the segment value comes from consolidation
division
4a) Sales Account from AR Account GL control 5) Sales Account from Product Group GL control
4b) Sales Account from Company's AR Account GL control 5a) Sales Account from AR Account GL control
4c) Contra Revenue Account from Transfer Definition 5b) Sales Account from Company's AR Account GL control
If Division segment is used, the segment value comes from consolidation If Division segment is used, the segment value comes from plant
division
5) COS account from Product Group GL control
5a) COS account from Company's Inventory COS and WIP GL control
If Division segment is used, the segment value comes from plant
PUR-CMI PO receipt to customer managed inventory ***No GL Transactions Created**** ***No GL Transactions Created****
PUR-CUS Records transactions for Buy to Order (BTO) parts shipped to a Non Inter-Company ****No GL Entry Created**** ****No GL Entry Created****
customer
PUR-CUS is only valid for the material queue.
PUR-CUS Records transactions for Buy to Order (BTO) parts shipped to an Inter-Company ****No GL Entry Created**** ****No GL Entry Created****
customer
PUR-CUS is only valid for the material queue.
PUR-DRP Records receipt transactions automatically generated by drop-shipments (for non 1) Part GL control 1) Clearing account from Company's AP Account GL control
part master parts and non standard cost part master parts)
2) Inventory account from Part Class GL control 2) Clearing account from Company's Inventory COS and WIP GL control
3) Inventory account from Company's Inventory COS and WIP GL control If Part has Mtl Burden Rate:
If Division segment is used, the segment value comes from warehouse GL Applied Mtl Burden account from Company's hierarchy COS and WIP GL
control then plant GL control control
If Division segment is used, the segment value comes from accounts.
Page 10

PUR-DRP Records receipt transactions automatically generated by drop-shipments (for 1) Part GL control 1) Clearing account from Company's AP Account GL control
standard cost master parts and non standard cost part master parts)
If Division segment is used, the segment value comes from warehouse GL Applied Mtl Burden account from Company's hierarchy COS and WIP GL
PUR-INS PO receipt to inspection 1) Inspection account from Part Class GL control 1) Clearing account from Company's AP Account GL control
2) Inspection account from Company's Inventory COS and WIP GL control 2) Clearing account from Company's Inventory COS and WIP GL control
If Division segment is used, the segment value comes from warehouse GL If Division segment is used, the segment value comes from account
PUR-INS Miscellaneous receipt to inspection 1) Inspection account from Part Class GL control 1) Clearing account from Company's AP Account GL control
2) Inspection account from Company's Inventory COS and WIP GL control 2) Clearing account from Company's Inventory COS and WIP GL control
If Division segment is used, the segment value comes from warehouse GL If Division segment is used, the segment value comes from account
PUR-MTL PO receipt to job material for a manufacturing job 1) WIP Material account from job's Product Group's GL control 1) Clearing account from Company's AP Account GL control
2) WIP Material account from Company's Inventory COS and WIP GL control 2) Clearing account from Company's Inventory COS and WIP GL control
If Part has Mtl Burden Rate: If Part has Mtl Burden Rate:
1) WIP Mtl Burden account from job's Product Group's GL control 1) Applied Mtl Burden account from Company's Inventory COS and WIP
GL control
2) WIP Mtl Burden account from Company's Inventory COS and WIP GL control If Division segment is used, the segment value comes from accounts.
If Division segment is used, the segment value comes from the Plant GL control,
then 1 or 2
PUR-MTL Miscellaneous receipt to job material for a manufacturing job 1)WIP Material account from job's Product Group's GL control 1) Clearing account from Company's AP Account GL control
2)WIP Material account from Company's Inventory COS and WIP GL control 2) Clearing account from Company's Inventory COS and WIP GL control
If Part has Mtl Burden Rate: If Part has Mtl Burden Rate:
1)WIP Mtl Burden account from job's Product Group's GL control 1) Applied Mtl Burden account from Company's Inventory COS and WIP
GL control
2)WIP Mtl Burden account from Company's Inventory COS and WIP GL control If Division segment is used, the segment value comes from accounts.
If Division segment is used, the segment value comes from the Plant GL control,
then 1 or 2
PUR-SMI PO receipt to supplier managed inventory ***No GL Transactions Created**** ***No GL Transactions Created****
PUR-SMI Miscellaneous receipt to supplier managed inventory ***No GL Transactions Created**** ***No GL Transactions Created****
PUR-STK PO receipt to stock 1) Part GL control 1) Clearing account from Company's AP Account GL control
If Division segment is used, the segment value comes from warehouse GL Applied Mtl Burden account from Company's Inventory COS and WIP GL
Page 11

PUR-STK Miscellaneous receipt to stock 1) Part GL control 1) Clearing account from Company's AP Account GL control
2) Inventory account from Part Class Gl control 2) Clearing account from Company's Inventory COS and WIP GL control
3) Inventory account from Company's Inventory COS and WIP GL control If Part has Mtl Burden Rate -
If Division segment is used, the segment value comes from warehouse GL Applied Mtl Burden account from Company's Inventory COS and WIP GL
PUR-SUB PO receipt to subcontract operation for a manufacturing job 1) WIP Subcontract from job's Product Group's GL control 1) Clearing account from Company's AP Account GL control
2) WIP Subcontract from Company's Inventory COS and WIP GL control 2) Clearing account from Company's Inventory COS and WIP GL control
If Division segment is used, the segment value comes from the Plant GL control, If Division segment is used, the segment value comes from account
then 1 or 2
PUR-SUB Miscellaneous receipt to subcontract operation for a manufacturing job 1) WIP Subcontract from job's Product Group's GL control 1) Clearing account from Company's AP Account GL control
2) WIP Subcontract from Company's Inventory COS and WIP GL control 2) Clearing account from Company's Inventory COS and WIP GL control
If Division segment is used, the segment value comes from the Plant GL control, If Division segment is used, the segment value comes from account
then 1 or 2
PUR-UKN PO receipt to other 1) Inventory account from Part Class GL control selected on PO 1) Clearing account from Company's AP Account GL control
2) Expense account from Supplier's Supplier GL control 2) Clearing account from Company's Inventory COS and WIP GL control
3)Expense account from Supplier's AP Account GL control If Division segment is used, the segment value comes from account
If Division segment is used, the segment value comes from 1, 2 or 3 above
PUR-UKN Miscellaneous receipt to other 1) Expense account from Supplier's Supplier GL control 1) Clearing account from Company's AP Account GL control
2) Expense account from Supplier's AP Account GL control 2) Clearing account from Company's Inventory COS and WIP GL control
If Division segment is used, the segment value comes from 1or 2 above If Division segment is used, the segment value comes from account
RMA-INS RMA Receipt: ****No GL Entry Created**** ****No GL Entry Created****

1) If Quality module enabled, RMA receipt automatically goes to inspection;
2) If Quality module is not enabled - use RMA Disposition in Order Mgmt
STK-ASM Issue of an assembly to a manufacturing job 1) WIP Material account from the job's Product Group's GL control 1) Part GL control
2) WIP Material from Company's Inventory COS and WIP GL control 2) Inventory account from Part Class GL control
Note: If MTL Burden Cost present WIP Material Burden Account is also 3) Inventory account from Company's Inventory COS and WIP GL control
debited following the above hierarchy (1&2).
If Division segment is used, the segment value comes from the Plant GL control, If Division segment is used, the segment value comes from Warehouse
then 1 or 2 GL control, then Plant GL control, then 1, 2 or 3.
STK-ASM Return of an assembly from a manufacturing job 1) Part GL control 1) WIP Material account from the job's Product Group's GL control
2) Inventory account from Part Class GL control 2) WIP Material from Company's Inventory COS and WIP GL control
3) Inventory account from Company's Inventory COS and WIP GL control Note: If MTL Burden Cost present WIP Material Burden Account is
also debited following the above hierarchy (1&2).
If Division segment is used, the segment value comes from Warehouse GL If Division segment is used, the segment value comes from the Plant GL
control, then Plant GL control, then 1, 2 or 3. control, then 1 or 2
STK-AST Records transfers of stock to create an asset (asset addition transactions) 1) Asset Clearing account from Company's Asset GL Control 1) Part GL control
2) Inventory account from Part Class GL control
3) Inventory account from Company's Inventory COS and WIP GL control
If Division segment is used, the segment value comes from the

Warehouse GL Control, then Plant GL control, then 1, 2, or 3
Page 12

STK-CUS Shipment to a non Inter-Company Customer from inventory 1) COS Elements from Product Group GL control 1) Part GL control
2) COS Elements from Company's Inventory COS and WIP GL control 2) Inventory account from Part Class GL control
If Department segment is used and a Sales Category is selected, the department If Division segment is used, the segment value comes from Warehouse
segment is overridden with the Sales Category Dept GL control, then Plant GL control, then 1, 2 or 3.
STK-CUS Shipment to an Inter-Company Customer from inventory 1) COS Elements from Intercompany AR Account GL control 1) Part GL control
If Division segment is used, the segment value comes from warehouse GL 2) Inventory account from Part Class GL control
If Department segment is used and a Sales Category is selected, the department 3) Inventory account from Company's Inventory COS and WIP GL control
STK-DMR Rejecting an inventory item ****Not a valid transaction type since version 3.00. May exist in ****Not a valid transaction type since version 3.00. May exist in
database if customer first installed on version 3.00 or less**** database if customer first installed on version 3.00 or less****
STK-INS Creating a non-conformance for an inventory item 1) Inspection account from Part Class GL control 1) Part GL control
2) Inspection account from Company's Inventory COS and WIP GL control 2) Inventory account from Part Class GL control
STK-KIT Shipment of sales kit components from inventory 1) Inventory account from Part GL control for the kit parent item 1) Inventory account from Part GL control for the kit component item
2) Inventory account from Part Class GL control for the kit parent item 2) Inventory account from Part Class GL control for the kit component item
3) Default Inventory COS/WIP Inventory account for the kit parent item 3) Default Inventory COS/WIP Inventory account for the kit component
item
If Division segment is used, the segment value comes from warehouse GL If Division segment is used, the segment value comes from Warehouse
control then plant GL control GL control, then Plant GL control, then 1, 2 or 3.
If Department segment is used and a Sales Category is selected, the department
STK-MTL Issue of material to a manufacturing job 1) WIP Material account from the job's Product Group's GL control 1) Part GL control
2) WIP Material from Company's Inventory COS and WIP GL control 2) Inventory account from Part Class GL control
Note: If MTL Burden Cost present WIP Material Burden Account is also 3) Inventory account from Company's Inventory COS and WIP GL control
debited following the above hierarchy (1&2)
If Division segment is used, the segment value comes from the Plant GL control, If Division segment is used, the segment value comes from Warehouse
then 1 or 2 GL control, then Plant GL control, then 1, 2 or 3.
STK-MTL Return of material from a manufacturing job 1) Part GL control 1) WIP Material account from the job's Product Group's GL control
2) Inventory account from Part Class GL control 2) WIP Material from Company's Inventory COS and WIP GL control
3) Inventory account from Company's Inventory COS and WIP GL control Note: If MTL Burden Cost present WIP Material Burden Account is
also debited following the above hierarchy (1&2).
If Division segment is used, the segment value comes from Warehouse GL If Division segment is used, the segment value comes from the Plant GL
control, then Plant GL control, then 1, 2 or 3. control, then 1 or 2
Page 13

STK-PLT 1st half of transfer of inventory from Plant A/Whse A to Plant B/Whse B 1) In Transit Account set up in Transfer Definitions 1) Part GL control
(See PLT-STK, PLT-MTL, PLT-ASM for 2nd half of transfer) 2) Inventory account from Part Class GL control
Note: If divisions are the same STK-STK transaction will be used instead of STK- 3) Inventory account from Company's Inventory COS and WIP GL control
PLT and PLT-STK
If Division segment is used, the segment value comes from warehouse A
then plant A then 1, 2 or 3.
STK-STK Transfer of inventory (Same Plant) or between plants 1) Part GL control 1) Part GL control
that have the same GL division 2) Inventory account from Part Class GL control 2) Inventory account from Part Class GL control
(If plant divisions are different see STK-PLT and PLT-STK) 3) Inventory account from Company's Inventory COS and WIP GL control 3) Inventory account from Company's Inventory COS and WIP GL control
If Division segment is used, the segment value comes from Warehouse GL If Division segment is used, the segment value comes from Warehouse
control, then Plant GL control, then 1, 2 or 3. GL control, then Plant GL control, then 1, 2 or 3.
STK-UKN Miscellaneous issue of inventory 1) Reason code GL control 1) Part GL control

2) Inventory Adjustment account from Company's Inventory COS and WIP GL 2) Inventory account from Part Class GL control
control
STK-UKN Miscellaneous return of inventory 1) Part GL control 1) Reason code GL control

2) Inventory account from Part Class GL control 2) Inventory Adjustment account from Company's Inventory COS and WIP
GL control
SUB-INS Creating a nonconformance for a subcontract operation Option to Move Costs to ****No GL Entry Created**** ****No GL Entry Created****
DMR during inspection
SVG-STK Receipt of Salvage to stock from a manufacturing job 1) Part GL control 1) WIP Material account from the job's Product Group's GL control
***Note By design, service jobs will not have salvageable material 2) Inventory account from Part Class GL control 2) WIP Material from Company's Inventory COS and WIP GL control
3) Inventory account from Company's Inventory COS and WIP GL control Note: If MTL Burden Cost present WIP Material Burden Account
If Division segment is used, the segment value comes from Warehouse GL is also credited
UKN-CUS Records Buy To Order (BTO) shipments of non-quantity bearing parts to the 1) COS Elements from Product Group GL control 1) Part GL control
customer
2) COS Elements from Company's inventory COS and WIP GL control 2) Inventory account from Part Class GL control
If Department segment is used and a Sales Category is selected the department If Division segment is used, the segment value comes from Warehouse
segment is overridden with the Sales Category Dept GL control, then Plant GL control, then 1, 2, or 3.
1) COS Elements from Intercompany AR Account GL control 1) Part GL control

UKN-CUS Records Buy To Order (BTO) shipments for standard cost part master parts to the If Division segment is used, the segment value comes from warehouse GL 2) Inventory account from Part Class GL control
customer control then plant GL control
If Department segment is used and a Sales Category is selected the 3) Inventory account from Company's Inventory COS and WIP GL control
department segment is overridden with the Sales Category Dept
GL control, then Plant GL control, then 1, 2, or 3.
WIP-MFG Issuance of make direct part on job it was built on (source job) to job requiring it ****No GL Entry Created**** ****No GL Entry Created****
(destination job)
Page 14
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Documentation areas of the EPICweb Customer Portal. To access
this site, you need a Site ID and an EPICweb account. To create an
account, go to http://support.epicor.com.

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Epicor ERP

Job Costing Course

Epicor ERP | 10.0.700.2 3

Enter Quoting Burden and Labor Rates ..................................................................................................29

4 Epicor ERP | 10.0.700.2

Add a Line Item to the Quote...................................................................................................52

Epicor ERP | 10.0.700.2 5

6 Epicor ERP | 10.0.700.2

Job Costing Course

1. Epicor ERP Accounting Basics

2. Manufacturing Business Cycles

4. Resource Groups and Resources

5. Daily Job Costing Processes

7. Specialized Job Costing Processes

Epicor ERP | 10.0.700.2 7

Before You Begin

Specific audiences will benefit from this course.

8 Epicor ERP | 10.0.700.2

4. From the Main menu, select the Main site.

Epicor ERP | 10.0.700.2 9

• Workshop - View and Edit the Labor Edit Report

10 Epicor ERP | 10.0.700.2

Epicor ERP | 10.0.700.2 11

Epicor ERP Accounting Basics

Key Concepts of Job Costing in Epicor ERP

12 Epicor ERP | 10.0.700.2

Manufacturing Business Cycles

Epicor ERP | 10.0.700.2 13

14 Epicor ERP | 10.0.700.2

Epicor ERP | 10.0.700.2 15

Standard Job Costing

FIFO Job Costing

The FIFO Costing Method

16 Epicor ERP | 10.0.700.2

FIFO Costing Key Points

1. FIFO costing is per cost ID, not per warehouse or site.

3. A FIFO average is calculated for inventory adjustments.

4. Each FIFO cost record is linked to a part transaction.

6. FIFO costing is not the same as FIFO inventory management.

FIFO Rollup Process

FIFO Cost Layers

Epicor ERP | 10.0.700.2 17

Workshop - Use FIFO Costing

Date Sequence Quantity Cost Extended Cost

Create a FIFO Part

1. From the New menu, select New Part.

5. In the Type field, verify Purchased displays.

6. In the Class field, select Purchased Materials.

8. Click Save and exit Part Maintenance.

18 Epicor ERP | 10.0.700.2

2. In the Date field, select 09/01/2010.

3. Click the Bin button.

5. Select Bin 01-01-01 and click OK.

6. In the Quantity field, enter 4

7. In the Reason, field select Add New Part.

Field Data 1 Data 2 Data 3

10. Exit Quantity Adjustment.

3. Click the FIFO Date/Seq/Sub button.

4. In the Part FIFO Cost Search window, click Search.

Epicor ERP | 10.0.700.2 19

6. In the FIFO column, in the Unit Material row, enter 7.

7. In the Reason field, select Add New Part.

Field Data 1 Data 2 Data 3