Epicor Kinetic Inventory Management
EPICOR KINETIC INVENTORY MANAGEMENT COMPLETE
EXAM QUESTIONS AND CORRECT ANSWERS NEWEST
VERSION (PASS GUARANTEE) 2026/2027
1. What is the primary purpose of the Part Master in Epicor Kinetic
Inventory Management?
ANSWER : The Part Master serves as the central repository for all part-
related data in Epicor Kinetic. It stores critical information such as part
number, description, unit of measure, cost method, product group, and
inventory parameters. Every transaction involving a part references the Part
Master, making it the foundation of inventory management. Without a
correctly configured Part Master record, parts cannot be received, issued,
transferred, or sold.
2. What does the term 'on-hand quantity' mean in Epicor Kinetic?
ANSWER : On-hand quantity refers to the total quantity of a part that is
physically present and available in a warehouse or specific bin location at a
given time. It represents inventory that has been received and not yet issued
or shipped. In Epicor Kinetic, on-hand quantity is updated in real time as
transactions such as receipts, issues, transfers, and adjustments are posted.
3. Explain the difference between a warehouse and a bin in Epicor Kinetic.
ANSWER : A warehouse is a broad storage location representing an entire
physical facility or a logical grouping of inventory. A bin is a specific storage
position within a warehouse, such as a shelf, rack, or floor location. Epicor
Kinetic supports multi-bin warehousing, allowing granular tracking of parts
down to the exact bin level. This distinction enables precise inventory
location management and improves picking efficiency.
4. What is a Unit of Measure (UOM) and why is it important in inventory?
ANSWER : A Unit of Measure defines how a part is counted, stored, and
transacted—examples include each, box, kilogram, or foot. In Epicor Kinetic,
UOM is critical because it governs how quantities appear on purchase
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, Epicor Kinetic Inventory Management
orders, sales orders, work orders, and inventory reports. Incorrect UOM
configuration can cause quantity discrepancies, costing errors, and
fulfillment mistakes. Epicor supports UOM conversion groups so parts can be
purchased in one unit and issued in another.
5. What is the FIFO costing method and how does Epicor Kinetic apply it?
ANSWER : FIFO stands for First-In, First-Out. Under this method, the cost of
goods sold or issued is based on the cost of the oldest inventory received. In
Epicor Kinetic, FIFO is maintained through cost layers—each receipt creates
a cost layer, and issues deplete the oldest layers first. This method is
especially useful when inventory costs fluctuate, as it reflects the actual flow
of goods and provides accurate cost of goods sold calculations.
6. What is the LIFO costing method?
ANSWER : LIFO stands for Last-In, First-Out. Under this method, the most
recently received inventory is assumed to be the first issued or sold. In
Epicor Kinetic, LIFO maintains cost layers similarly to FIFO but depletes the
newest layer first. LIFO can result in lower taxable income during periods of
rising costs because higher recent costs are expensed sooner. Note that LIFO
is not permitted under IFRS and is less commonly used internationally.
7. What is Average Costing in Epicor Kinetic?
ANSWER : Average costing calculates the inventory value by dividing the
total cost of all units on hand by the total quantity on hand, resulting in a
weighted average unit cost. Every time a receipt is posted in Epicor Kinetic
using average cost, the system recalculates the average based on the new
receipt cost and existing inventory cost. This method smooths out price
fluctuations and is one of the most widely used costing methods in
manufacturing environments.
8. What is Standard Costing and what are its advantages?
ANSWER : Standard costing assigns a predetermined fixed cost to each part,
regardless of the actual purchase price. In Epicor Kinetic, variances between
the standard cost and actual cost are posted to variance accounts. The
advantage of standard costing is that it simplifies cost management, enables
meaningful budget comparisons, and isolates purchasing efficiency. It is
commonly used in manufacturing operations where consistent cost tracking
and performance measurement are priorities.
9. What is a Lot Number in Epicor Kinetic inventory?
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, Epicor Kinetic Inventory Management
ANSWER : A Lot Number is a unique identifier assigned to a batch or group
of parts that were produced or received together. In Epicor Kinetic, lot
tracking allows companies to trace inventory to its origin, supporting quality
control and regulatory compliance. Lot-controlled parts require a lot number
on all transactions including receipts, issues, transfers, and shipments. Lot
numbers are essential for industries such as food, pharmaceutical, and
aerospace where traceability is mandated.
10. What is a Serial Number in Epicor Kinetic and how does it differ from a
Lot Number?
ANSWER : A Serial Number is a unique identifier assigned to a single
individual unit of a part, whereas a Lot Number applies to an entire batch. In
Epicor Kinetic, serial-tracked parts require a unique serial number on every
transaction affecting that specific unit. Serial tracking provides full unit-level
traceability throughout the part's life cycle. Serial numbers are common for
high-value or regulated items such as electronics, medical devices, and
weapons.
11. What is an Inventory Adjustment in Epicor Kinetic?
ANSWER : An Inventory Adjustment is a transaction used to correct the on-
hand quantity or cost of a part in Epicor Kinetic when there is a discrepancy
between the system record and the physical count. Adjustments can increase
or decrease quantity and are posted to a general ledger adjustment account.
They should be used carefully and only after physical verification, as they
directly impact financial records.
12. What is a Physical Inventory Count in Epicor Kinetic?
ANSWER : A Physical Inventory Count is a process where all inventory is
counted and compared against system records to identify discrepancies. In
Epicor Kinetic, the process involves generating count sheets, recording
physical counts, comparing them with system quantities, and posting
adjustments for any variances. Physical counts can be performed for the
entire warehouse or selected parts and are typically done at period end for
financial accuracy.
13. What is Cycle Counting in Epicor Kinetic?
ANSWER : Cycle counting is an ongoing inventory auditing technique where
subsets of inventory are counted on a rotating schedule rather than
performing a full physical count all at once. In Epicor Kinetic, cycle counting
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, Epicor Kinetic Inventory Management
can be configured by ABC classification, product group, or bin location. It
reduces disruption to operations, improves accuracy over time, and allows
for continuous reconciliation without shutting down the warehouse.
14. What is ABC Classification in inventory management?
ANSWER : ABC Classification categorizes inventory into three groups based
on value or usage frequency. A items are high-value or high-usage parts
requiring tight control and frequent counting. B items are moderate in value
and usage. C items are low-value or slow-moving parts with less frequent
management attention. In Epicor Kinetic, ABC codes are assigned to parts
and drive cycle count frequency and replenishment strategies.
15. What is a Part Class in Epicor Kinetic and why is it used?
ANSWER : A Part Class is a grouping mechanism that associates parts with
a set of general ledger accounts for inventory transactions. In Epicor Kinetic,
every part belongs to a Part Class, which determines which GL accounts are
debited or credited when inventory is received, issued, or adjusted. Correct
Part Class assignment ensures financial transactions post to the right
accounts and simplifies account maintenance.
16. What does the Minimum Quantity parameter do in Epicor Kinetic?
ANSWER : The Minimum Quantity parameter sets the lowest acceptable on-
hand quantity for a part before a replenishment action should be triggered.
In Epicor Kinetic, when the on-hand quantity falls below the minimum, the
system can generate a purchase suggestion or manufacturing suggestion
depending on the part's replenishment method. This parameter helps
prevent stockouts and ensures continuous production or order fulfillment.
17. What is the Maximum Quantity parameter in Epicor Kinetic?
ANSWER : The Maximum Quantity parameter sets the upper limit of
inventory that should be held for a part. In Epicor Kinetic, this prevents
over-purchasing and excessive carrying costs. When calculating order
quantities, the system ensures that replenishment does not push on-hand
inventory beyond the maximum. Setting appropriate maximum quantities
supports lean inventory practices and reduces the risk of obsolescence.
18. What is Reorder Point (ROP) in Epicor Kinetic?
ANSWER : The Reorder Point is the inventory level at which a new
replenishment order should be placed to avoid a stockout before the next
Page
EPICOR KINETIC INVENTORY MANAGEMENT COMPLETE
EXAM QUESTIONS AND CORRECT ANSWERS NEWEST
VERSION (PASS GUARANTEE) 2026/2027
1. What is the primary purpose of the Part Master in Epicor Kinetic
Inventory Management?
ANSWER : The Part Master serves as the central repository for all part-
related data in Epicor Kinetic. It stores critical information such as part
number, description, unit of measure, cost method, product group, and
inventory parameters. Every transaction involving a part references the Part
Master, making it the foundation of inventory management. Without a
correctly configured Part Master record, parts cannot be received, issued,
transferred, or sold.
2. What does the term 'on-hand quantity' mean in Epicor Kinetic?
ANSWER : On-hand quantity refers to the total quantity of a part that is
physically present and available in a warehouse or specific bin location at a
given time. It represents inventory that has been received and not yet issued
or shipped. In Epicor Kinetic, on-hand quantity is updated in real time as
transactions such as receipts, issues, transfers, and adjustments are posted.
3. Explain the difference between a warehouse and a bin in Epicor Kinetic.
ANSWER : A warehouse is a broad storage location representing an entire
physical facility or a logical grouping of inventory. A bin is a specific storage
position within a warehouse, such as a shelf, rack, or floor location. Epicor
Kinetic supports multi-bin warehousing, allowing granular tracking of parts
down to the exact bin level. This distinction enables precise inventory
location management and improves picking efficiency.
4. What is a Unit of Measure (UOM) and why is it important in inventory?
ANSWER : A Unit of Measure defines how a part is counted, stored, and
transacted—examples include each, box, kilogram, or foot. In Epicor Kinetic,
UOM is critical because it governs how quantities appear on purchase
Page
, Epicor Kinetic Inventory Management
orders, sales orders, work orders, and inventory reports. Incorrect UOM
configuration can cause quantity discrepancies, costing errors, and
fulfillment mistakes. Epicor supports UOM conversion groups so parts can be
purchased in one unit and issued in another.
5. What is the FIFO costing method and how does Epicor Kinetic apply it?
ANSWER : FIFO stands for First-In, First-Out. Under this method, the cost of
goods sold or issued is based on the cost of the oldest inventory received. In
Epicor Kinetic, FIFO is maintained through cost layers—each receipt creates
a cost layer, and issues deplete the oldest layers first. This method is
especially useful when inventory costs fluctuate, as it reflects the actual flow
of goods and provides accurate cost of goods sold calculations.
6. What is the LIFO costing method?
ANSWER : LIFO stands for Last-In, First-Out. Under this method, the most
recently received inventory is assumed to be the first issued or sold. In
Epicor Kinetic, LIFO maintains cost layers similarly to FIFO but depletes the
newest layer first. LIFO can result in lower taxable income during periods of
rising costs because higher recent costs are expensed sooner. Note that LIFO
is not permitted under IFRS and is less commonly used internationally.
7. What is Average Costing in Epicor Kinetic?
ANSWER : Average costing calculates the inventory value by dividing the
total cost of all units on hand by the total quantity on hand, resulting in a
weighted average unit cost. Every time a receipt is posted in Epicor Kinetic
using average cost, the system recalculates the average based on the new
receipt cost and existing inventory cost. This method smooths out price
fluctuations and is one of the most widely used costing methods in
manufacturing environments.
8. What is Standard Costing and what are its advantages?
ANSWER : Standard costing assigns a predetermined fixed cost to each part,
regardless of the actual purchase price. In Epicor Kinetic, variances between
the standard cost and actual cost are posted to variance accounts. The
advantage of standard costing is that it simplifies cost management, enables
meaningful budget comparisons, and isolates purchasing efficiency. It is
commonly used in manufacturing operations where consistent cost tracking
and performance measurement are priorities.
9. What is a Lot Number in Epicor Kinetic inventory?
Page
, Epicor Kinetic Inventory Management
ANSWER : A Lot Number is a unique identifier assigned to a batch or group
of parts that were produced or received together. In Epicor Kinetic, lot
tracking allows companies to trace inventory to its origin, supporting quality
control and regulatory compliance. Lot-controlled parts require a lot number
on all transactions including receipts, issues, transfers, and shipments. Lot
numbers are essential for industries such as food, pharmaceutical, and
aerospace where traceability is mandated.
10. What is a Serial Number in Epicor Kinetic and how does it differ from a
Lot Number?
ANSWER : A Serial Number is a unique identifier assigned to a single
individual unit of a part, whereas a Lot Number applies to an entire batch. In
Epicor Kinetic, serial-tracked parts require a unique serial number on every
transaction affecting that specific unit. Serial tracking provides full unit-level
traceability throughout the part's life cycle. Serial numbers are common for
high-value or regulated items such as electronics, medical devices, and
weapons.
11. What is an Inventory Adjustment in Epicor Kinetic?
ANSWER : An Inventory Adjustment is a transaction used to correct the on-
hand quantity or cost of a part in Epicor Kinetic when there is a discrepancy
between the system record and the physical count. Adjustments can increase
or decrease quantity and are posted to a general ledger adjustment account.
They should be used carefully and only after physical verification, as they
directly impact financial records.
12. What is a Physical Inventory Count in Epicor Kinetic?
ANSWER : A Physical Inventory Count is a process where all inventory is
counted and compared against system records to identify discrepancies. In
Epicor Kinetic, the process involves generating count sheets, recording
physical counts, comparing them with system quantities, and posting
adjustments for any variances. Physical counts can be performed for the
entire warehouse or selected parts and are typically done at period end for
financial accuracy.
13. What is Cycle Counting in Epicor Kinetic?
ANSWER : Cycle counting is an ongoing inventory auditing technique where
subsets of inventory are counted on a rotating schedule rather than
performing a full physical count all at once. In Epicor Kinetic, cycle counting
Page
, Epicor Kinetic Inventory Management
can be configured by ABC classification, product group, or bin location. It
reduces disruption to operations, improves accuracy over time, and allows
for continuous reconciliation without shutting down the warehouse.
14. What is ABC Classification in inventory management?
ANSWER : ABC Classification categorizes inventory into three groups based
on value or usage frequency. A items are high-value or high-usage parts
requiring tight control and frequent counting. B items are moderate in value
and usage. C items are low-value or slow-moving parts with less frequent
management attention. In Epicor Kinetic, ABC codes are assigned to parts
and drive cycle count frequency and replenishment strategies.
15. What is a Part Class in Epicor Kinetic and why is it used?
ANSWER : A Part Class is a grouping mechanism that associates parts with
a set of general ledger accounts for inventory transactions. In Epicor Kinetic,
every part belongs to a Part Class, which determines which GL accounts are
debited or credited when inventory is received, issued, or adjusted. Correct
Part Class assignment ensures financial transactions post to the right
accounts and simplifies account maintenance.
16. What does the Minimum Quantity parameter do in Epicor Kinetic?
ANSWER : The Minimum Quantity parameter sets the lowest acceptable on-
hand quantity for a part before a replenishment action should be triggered.
In Epicor Kinetic, when the on-hand quantity falls below the minimum, the
system can generate a purchase suggestion or manufacturing suggestion
depending on the part's replenishment method. This parameter helps
prevent stockouts and ensures continuous production or order fulfillment.
17. What is the Maximum Quantity parameter in Epicor Kinetic?
ANSWER : The Maximum Quantity parameter sets the upper limit of
inventory that should be held for a part. In Epicor Kinetic, this prevents
over-purchasing and excessive carrying costs. When calculating order
quantities, the system ensures that replenishment does not push on-hand
inventory beyond the maximum. Setting appropriate maximum quantities
supports lean inventory practices and reduces the risk of obsolescence.
18. What is Reorder Point (ROP) in Epicor Kinetic?
ANSWER : The Reorder Point is the inventory level at which a new
replenishment order should be placed to avoid a stockout before the next
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