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Epicor Kinetic · Finance

Epicor Kinetic costing methods: standard, average, FIFO, last and lot

By Al Hasib Tamim, published 25 October 2026

Applies to: Epicor Kinetic and Epicor ERP 10.2. Validate costing configurations and GL posting rules in Pilot before applying changes in Production.

Short answer

Kinetic lets you value inventory using several methods. The most common are Standard (fixed cost with variances) and Average (moving weighted average). Others are FIFO, Last, and Lot-based methods. Do not change a part's costing method while stock is on hand. Clear stock first, change the method, set the cost, then bring stock back, with your controller's sign-off.

Methods and codes

  • Standard (S): a fixed cost set by finance. Differences between actual and standard post as variances.
  • Average (A): cost is recalculated as a weighted average when stock is received.
  • FIFO (F): cost layers are consumed oldest first.
  • Last (L): inventory is valued at the most recent receipt cost.
  • Lot (T): Lot Average costing, where each lot carries its own discrete unit cost.

Part costing methods are set on Part Maintenance (Part.CostMethod) and can be overridden per site on PartPlant (PartPlant.CostMethod) when multi-site costing is configured.

Cost buckets

A unit cost is split across five elements: material, labor, burden, subcontract, and material burden. Column names are prefixed by method in Erp.PartCost (for example, StdMaterialCost and AvgMaterialCost, with the subcontract and material-burden columns named AvgSubContCost and AvgMtlBurCost). PartCost is keyed by Company, PartNum, and CostID, so table joins must include CostID or you will get duplicate rows in multi-site or multi-cost environments.

HOW A PURCHASE RECEIPT POSTS (illustrative; your GL accounts and posting rules decide the real entries) Standard cost = $10, PO price = $12:

  • Inventory is valued at $10.
  • Uninvoiced receipts / AP clearing carries $12.
  • The $2 difference goes to purchase price variance.

Average cost, same receipt: inventory is valued at $12 with no variance, and the average is recalculated.

Cost rollup vs cost adjustment

  • Costing Workbench is used to roll up standard costs from the method of manufacturing (BOM/BOO). After review, posting the cost group updates the active cost and posts inventory revaluation adjustments.
  • Cost Adjustment is used to correct costs on existing stock, and it posts a cost adjustment transaction (transaction type ADJ-CST, recorded in PartTran).

Safely changing a costing method

  1. Agree the plan with your controller and test it in Pilot.
  2. Close or complete WIP involving the part.
  3. Adjust on-hand stock to zero and record the value.
  4. Change the method in Part Maintenance (and at site level if your setup uses it).
  5. Set the opening cost.
  6. Adjust stock back in and reconcile the inventory asset account to the stock value.

FAQ

Can sites use different methods for the same part?

Yes, if multi-site costing is licensed and configured, each site can assign a distinct Cost Method on the PartPlant record.

Why can average cost go negative or swing?

Inventory driven below zero before a later receipt can distort the average. See our negative inventory guide.

Where can I see cost history?

Cost adjustment entries appear in PartTran, and field-level history is available only if you have set up a Change Log on the relevant table.

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