Using MRO Products – Accolent ERP Help Documentation

Accolent ERP supports MRO products which consist of items such as spare parts, replacement parts, consumables, and tools. MRO products are stocked just as are sale items, but are used for internal MRO (Maintenance, Repair and Operations) purposes rather than held for sale. These MRO products can be given a separate product Class “m – MRO Products,” if desired, which can be used for financial reporting of MRO separately from items held for sale. In other respects, MRO products are purchased and managed in inventory with ledger cards and tracking quantity just as sale products. To move MRO products out of inventory for use internally, there is an MRO Requisition Order instead of the sales orders that are used for sale products.

MRO Products

MRO Products are used internally for Maintenance, Repairs and Operations purposes.
They should be marked as Inventory products so that their quantities can be tracked through ledger cards.
They may be marked as Class “m – MRO Products” to distinguish from Class “s- Sales Products” in inventory, if desired.
Some products may be inventory items held for sale that may also be used internally for MRO purposes.

Purchase of MRO Products

MRO products are purchased from third-party vendors on POs just as for sales products.
Receiving POs for MRO products is exactly the same as receipt of POs for sales products.
On receipt of a PO, the system (1) increments the quantity in inventory and (2) updates the average costs for the products received.

Usage of MRO Products

When MRO products are used internally, they are removed from inventory and moved to another GL account depending on the purpose.
To take a product out of inventory and use it for MRO purposes go to Inventory/Products > MRO Requisition > MRO Requisition Order to record the transaction and update the quantity in inventory.
Following are several examples of how MRO products are typically used:
- MRO products used for supplies or regular maintenance (e.g., light bulbs, lubricants, etc.) would be moved out of the Inventory account and into the GL Account for Maintenance Expense; or
- MRO products used for Operations may be moved into a COGS Expense account or a WIP Inventory account; or
- MRO products used to repair a Rental Product would be moved out of the Inventory account and into the GL Account for the Rental Product in Fixed Assets.

Products Used for Maintenance

In this example, a quantity of 5 EA of an inventory product 18JP1000V is used for internal maintenance.
The Average Cost of 18JP1000V is $6.00, so an amount of $30.00 is debited to Repairs & Maintenance Expense and credited to Inventory.

The quantity on hand of 18JP1000V in inventory is reduced by 5 EA and recorded as for MRO purposes.

This is the GL posting of the transaction.

Products Used for Operations

In this example, a quantity of 50 x 3Lb BAGs of an inventory product KBG020 is used for internal planting of turf for ultimate sale.
The Average Cost of KBG020 is $12.00/BAG, so an amount of $600.00 is debited to the WIP Inventory cost pool and credited to Inventory.

The quantity on hand of KBG020 in inventory is reduced by 50 BAGs and recorded as for MRO purposes.

This is the GL Posting:

Products Used for Repairs

In this example, 2 EA of a Brake-Assembly and 2 EA of HDLMP-HDU is used for repair of a rental product BobcatE171.5T with Serial No BCE17368975
The Extended Average Cost of the repair parts is $486.432, which is debited to Rental Equipment and credited to Inventory.