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Specific Costing & Variances
steveinlondon
Member Posts: 5
We are truggling to understand specific costing when variances are created.
We have an item with a standard cost set at £1000
The items costng method is specific
(We think the item shouldnt have a standard cost set because it is irrelevent for specific costed items - but we think the system will ignore it)
We process that item within Manufacturing and book into into stock.
The expected Cost is £20000
The Actual Cost is £20000
I would expect zero variance but it seems that Navision compares actual with standard and gives me a variance of -£19000
can anybody shed any light?
We have an item with a standard cost set at £1000
The items costng method is specific
(We think the item shouldnt have a standard cost set because it is irrelevent for specific costed items - but we think the system will ignore it)
We process that item within Manufacturing and book into into stock.
The expected Cost is £20000
The Actual Cost is £20000
I would expect zero variance but it seems that Navision compares actual with standard and gives me a variance of -£19000
can anybody shed any light?
0