Stock vs Nonstock Parts in Epicor Kinetic: What They Are and When to Use Each

In manufacturing and distribution environments, the way materials are configured in an ERP system has a direct impact on inventory accuracy, purchasing strategy, production planning, and financial reporting. One of the most important configuration decisions in Epicor is determining whether a part should be defined as a Stock Part or a Nonstock Part.

Although the difference between these two options may appear straightforward, the choice affects how the system manages inventory, how Material Requirements Planning (MRP) behaves, and how costs are tracked across jobs and orders. A clear understanding of these configurations helps organizations maintain accurate data, streamline purchasing, and avoid planning issues.

This article explains the differences between Stock and Nonstock parts, how each behaves within Epicor, and when each configuration should be used.

What Are Stock Parts?

Stock Parts are materials that a company physically maintains in inventory. These items are tracked within warehouses and bins, and Epicor manages them through inventory transactions such as receipts, issues, adjustments, and cycle counts.

Because these items are inventory-controlled, Epicor continuously maintains a quantity on hand and records the movement of materials as they enter and leave inventory. Stock Parts are commonly used for materials that are purchased or produced regularly and must remain available for ongoing production or sales.

Key Characteristics of Stock Parts

Stock Parts include several operational characteristics that support inventory management and planning:

• They are stored in defined warehouses and bin locations.

• Inventory transactions track receipts, issues, returns, adjustments, and cycle counts.

• Material quantities are visible as available inventory within the system.

• They participate in MRP and MPS planning, including safety stock levels, reorder points, and minimum and maximum inventory settings.

• They support multiple costing methods such as Standard Cost, Average Cost, FIFO, and Last Cost.

Because inventory quantities are maintained, organizations gain visibility into stock levels and can plan replenishment more effectively.

Example Scenario

Consider a manufacturing company that frequently uses a specific fastener in production. A job might require only two pieces, but the purchasing department must buy them in boxes of fifty.

If the fastener is configured as a Stock Part, Epicor allows two units to be issued to the job while the remaining forty eight units remain available in inventory for future jobs. This configuration prevents unnecessary purchasing and ensures the leftover material remains visible and reusable.

Typical Examples of Stock Parts

Stock Parts are commonly used for materials that are consumed regularly or must remain available to support production.

Examples include:

• Raw materials such as steel, aluminum, resins, or packaging materials

• Frequently used components such as screws, connectors, or labels

• Subassemblies that support multiple production jobs

• Finished goods that are produced and stored to fulfill customer demand

When to Use Stock Parts

A Stock Part configuration is generally appropriate when:

• Inventory levels must be tracked and controlled

• Materials are used repeatedly across multiple jobs or orders

• Traceability of inventory movements is required

• Accurate costing and inventory valuation are necessary

• Production planning depends on available inventory

For most manufacturers, the majority of production materials fall into this category.

What Are Nonstock Parts?

Nonstock Parts are materials that are not formally maintained in inventory. These items do not have a quantity on hand and are typically purchased or produced only when they are required.

Rather than entering inventory, Nonstock materials are consumed directly by the transaction that requires them. This transaction may be a job, a purchase order, or a sales order.

This configuration is useful for materials that are rarely used, purchased for a specific project, or unlikely to be reused in future production.

Key Characteristics of Nonstock Parts

Nonstock Parts behave differently from Stock Parts in several important ways:

• They do not maintain inventory quantities.

• They are typically purchased or produced specifically for a job, order, or project.

• They do not appear as available inventory during MRP planning.

• MRP generates supply only to satisfy the specific demand that requires the material.

• They do not participate in warehouse activities such as cycle counts or inventory adjustments.

• Costs are usually applied directly to the job or order that consumes the material.

This configuration simplifies management when materials are purchased only for a single use.

Example Scenario

Imagine a production job that requires a specialized tool or a custom spare component that will only be used once. After the job is completed, the material will not be reused.

If the item were configured as a Stock Part, the system would require warehouse tracking and inventory management for a material that will never be used again. By configuring it as a Nonstock Part, the company can purchase the item specifically for the job and apply the cost directly to that job.

Typical Examples of Nonstock Parts

Common examples of Nonstock Parts include:

• Specialized tools purchased for a specific job

• Custom spare components used once

• Chemicals or materials used only for a particular project

• One-time repair parts or maintenance items

• Unique consumables that are not reused

When to Use Nonstock Parts

Nonstock configuration is typically appropriate when:

• Inventory tracking is not necessary

• Materials are purchased specifically for a job or project

• There is no expectation of leftover inventory

• Costs should be applied directly to a job or order

• Maintaining inventory records would add unnecessary administrative overhead

How Epicor ERP Handles Stock vs Nonstock Configuration

In Epicor, this configuration is defined in the Part Master record. Each part includes a setting that determines whether it will be inventory controlled.

When the Nonstock checkbox is selected, Epicor treats the item as a Nonstock Part and bypasses standard inventory tracking. The system does not maintain a quantity on hand and does not require warehouse management for the item.

If the Nonstock option is not selected, the part is treated as a Stock Part. In this case, the system maintains inventory quantities and requires warehouse transactions to track material movement.

Because this setting determines how the system handles planning, purchasing, and costing, it is important to evaluate the operational role of a material before defining its configuration.

How Stock and Nonstock Parts Behave in Jobs and Bills of Materials

The difference between these configurations also affects how Epicor handles materials in jobs and Bills of Materials.

When a Stock Part is required for a job, Epicor first checks available inventory. If sufficient stock exists, the material can be issued directly from inventory. If inventory levels fall below required quantities, MRP may generate suggestions to replenish the material.

When a Nonstock Part is used in a job or Bill of Materials, the system does not look for available inventory. Instead, it generates purchasing requirements tied directly to the job or order that requires the item.

This distinction is important because it influences purchasing behavior, job costing, and material planning.

Key Differences Between Stock and Nonstock Parts

Attribute	Stock Part	Nonstock Part
Inventory Control	Maintains quantity on hand	No quantity on hand
Warehouse Management	Stored in warehouses and bins	Not maintained in inventory
MRP Planning	Considers inventory levels, safety stock, and reorder settings	Generates supply only for specific demand
Traceability	Full transaction history	Limited transaction tracking
Costing	Uses inventory costing methods	Cost applied directly to job or order
Typical Usage	Raw materials, components, finished goods	One-time purchases, project materials

Common Configuration Mistakes

Organizations sometimes encounter planning or costing issues when parts are not configured appropriately. Several common mistakes appear in ERP environments.

One frequent issue is defining regularly used materials as Nonstock Parts. This can lead to repeated purchasing of materials that should have been reused from inventory.

Another common problem is maintaining rarely used materials as Stock Parts. When this happens, inventory records may accumulate for items that are never consumed again, which complicates cycle counts and inventory audits.

In some cases, organizations intentionally classify parts as Nonstock to avoid managing inventory records. While this may simplify setup in the short term, it often reduces visibility into material consumption and can distort production costing.

Establishing clear guidelines for part classification helps maintain reliable ERP data and supports better planning decisions.

Final Thoughts

Both Stock and Nonstock parts serve important roles in Epicor. The key is understanding how each configuration affects inventory management, purchasing behavior, and production planning.

Stock Parts support operational materials that must be tracked, replenished, and reused across multiple jobs. Nonstock Parts provide flexibility for materials that are purchased only when needed and consumed directly by a specific transaction.

By carefully evaluating how materials are used in production and purchasing workflows, organizations can configure their part records in a way that improves inventory visibility, supports accurate planning, and maintains reliable system data.