4. About OriGen Biomedical
OriGen was founded in 1996
Currently 55 employees
Based in Austin, Texas
$1.9MM in Inventory
$7.8MM in Sales
5. How We Leverage Epicor 9
Went live with 9.05 in 2010
Chose Epicor for scalability and
robust inventory and production
features
Product traceability is critical
6. Inventory Variances Over Time
0
10
20
30
40
50
60
70
80
Jul. 2012 Dec. 2012 Mar. 2013
Thousands(Absolute)
Raw Material WIP Finished Goods Net Variance
7. Question:
How often do you reconcile inventory
reports to the GL?
A. Once per day
B. Once per week
C. Once per month
D. Never/Reports don’t balance
E. Have not deployed Epicor
9. Potential Causes for Variances
General
Ledger
• Control
Codes
• Journal
Entries
Reports
• “As Of”
Dates
• Backdated
Entries
• Report
Settings
Human Error
• Training
• Clerical
Errors
• Not
Following
Procedure
10. How Does Inventory Flow through the GL?
Action Tran Type Dr. Cr.
Receipt (no Insp.) PUR-STK Raw Materials AP Clearing
Receipt to Inspection PUR-INS Inspection Pending AP Clearing
Receipt w/o Part Class PUR-UNK Unclassified Exp. AP Clearing
Pass Inspection INS-STK Raw Materials Inspection Pending
Fail Inspection INS-DMR DMR Hold Inspection Pending
Reject DMR Material DMR-REJ Scrap COGS DMR Hold
Issue Raw Material to Job STK-MTL WIP Raw Materials
Issue Sub-assembly to Job STK-MTL WIP Sub-Assembly
11. Which Inventory Reports Are Affected?
Action Tran Type Part Moves to: Part Leaves:
Receipt (no Insp.) PUR-STK Stock Status Rpt. n/a – new part
Receipt to Inspection PUR-INS Inspection Pending n/a – new part
Receipt w/o Part Class PUR-UNK Stock Status n/a – new part
Pass Inspection INS-STK Stock Status Rpt. Inspection Pending
Fail Inspection INS-DMR Open DMR Rpt. Inspection Pending
Reject DMR Material DMR-REJ None Open DMR Rpt.
Issue Raw Material to Job STK-MTL WIP Report Stock Status Rpt.
Issue Sub-assembly to Job STK-MTL WIP Report Stock Status Rpt.
13. Set a Starting Point
Post outdated transactions
Review “Inventory/WIP Reconciliation” report
• Set Start Date way back and only look at unposted items
Run “Capture COS/WIP”
14. Run These Reports:
Inventory WIP Reconciliation (again)
Stock Status
Open DMR
Inspection Pending
WIP
General Ledger
Trial Balance
17. “Reset” the Inventory GL Accounts
Review trial balance
Journal entry to zero out inventory accounts
• Post against inventory reserve (contra asset)
Review inventory reports
Journal entry to make GL match reports
• Pull from inventory reserve
• Charge changes to reserve and deplete
Balance daily until the dust settles
18. Tools to Track Down Variances
Balance Inventory Reports to GL Daily
• Variances are much easier to find with less data
Inventory/WIP Reconciliation Report for GL movement
• Refine to a specific GL or TranType
Keep track of parts with altered class or product group
• Changing PG or PC moves inventory reports but not GL
Identify internal processes that need to change
Use Epicor consultants to review control code setup
Get creative!
20. Address Training Needs & “Buy-in”
Well-trained
employees
“Buy In” – E9
is easy to use
Clean data in
and out
Lack of
training
Employees
not on board
Poor data
quality
When training is not a priority:
However, when training is a priority:
21. Other Issues to Investigate
“As of” dated reports don’t give historical totals
Prevent transaction activity while running inventory
reports – run reports after-hours
Dates/date ranges don’t match
Stock Status Report excludes non-nettable bins
Rounding variances
22. “As Of” Report Dates Omit Data
Historical dates
don’t necessarily
give historical
totals
“Cutoff” or “As Of”
dates show data in
unexpected ways
WIP Report shows
current jobs with
$0 in cost; Closed
jobs not listed.
