Material Variance Account

Ah_Kit

I'm trying to setup a production BOM, declare output and consumption quantity.

After complete the above task, run ACIE batch and post periodic activites (PA) but i found that the material variance was capture zero amount.

If I have a materials cost as RM12.30 and actual cost was RM16.90, which account mapping will capture the cost?

By right, after post PA, the cost will be transfer from Inventory Interimn to material? but it was not working such a way.

Anyone can help ?

Thank you.

Squid

AdamRoue

What costing method do you have?

The material variance account will do what it says on the tin, capture your variance in material.

Ah_Kit

adam,

i'm using the standard costing and it was not work so idealise. Different with other ERP software.

How abt FIFO and Average ? I could not find the material variance account after reporting output and consumption?

Navision designed only capture those purchase variance cost??

Can revert to me ?

Thank you.

Squid

AdamRoue

Lets start with the basics.

Your standard cost of RM was 12.30 - how do you know the actual was 16.90? Did you over report consumption to achieve this - remember you are capturing purchase variance at the point of purchase, this does not DOUBLE as a manufacturing variance, this variance is on usage, as we already have the standard cost and any purhcase variances already accounted for.