Re: VARIANCE FIELD IN PRODUCTION SUMMARY

Hi Rakesh Patil

WIP Variance account will be posted when there is a change in the 'Planned Qty' and 'issued Qty' of Production Order.

Assume as per you BOM,

To make 1 qty of FG you needs

RM1    5 Qty

RM2    10 Qty

Production Order is issued for 5qty of FG. So Production Order would be like;

Item   Base Qty   Planned Qty

RM1    5 Qty        25Qty

RM2    10 Qty       50 Qty.

Now you issue more quantity than the planned qty say, RM1 you issue 30 Qty, the difference in cost of 5 Qty as per your inventory valuation would be posted to the WIP Variance Account.

Hope Helpful

Regards

Kennedy