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Re: Variance Cost when closed Production Order

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since u r using std cost on parent, and avg on material. The variance is obvious since ur parent cost will be different from the avg add-up from material.

 

The difference will be posted into variance.

 

WIP is just a temp space to allow u describe the status when parent is not done, and and material is issued.

 

So if u think ur transaction is done in a single step, material disappear from inventory, and finish good appear in inventory at the same time.

 

std cost of parent - sum of material's avg = variance.

 

This is something u can not avoid since u r using different cost method.

 

Frank


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