I’m trying to understand how the mnfg variance is being populated in related accounts through some exercises in Cronus.
I have my Released P. Order for Front hub.
1st I posted a consumption journal with changed quantities (Assuming this is where I populated a material variance) and it showed me a Material Cost Variance of 0.50 in my released Prod.O statistics.
I followed the same procedure (different Run times from what it was defined in the routing) when posting the output journal assuming it would populate my capacity variance.
And after posting I would expect the value entries for the released prod.O to record my Material and Capacity variance with an Entry Type = Variance and my balance gets changed in Accounts for Material Variance and Capacity Variance. But it doesn’t
Can some expert please let me know where I’m going wrong?
Also how can I extend this exercise in order to see how WIP is updated?
Many Thanks in advance….
Thank you so much for your usual quick reply Kapil.
Yes I can see my variances on the Prod. Order statistics report as in my released prod. Order statistics.
But still I want to see how my related accounts in COA (material variance and Capacity variance) are being updated though those amounts. Isn’t it reasonable for me to expect them to populate in value entries with Type = Variance as I mentioned in my question?
Am I doing the wrong exercise to achieve what I want?
U need to have costing method of the Item “Standard” to have this variance posted in G/L. Then use items which r not equal to BOm and use capacity diff from specified in routing u will get the figures.
My costing method is ‘Standard’. And I can see the related posted entries in’ WIP’ and ‘inventory Acc’.
But no change in ‘Material Variance’ and ‘Capacity variance Acc’.
And why can’t i see any variance type transactions in value entries?
As i said u see this change in G/L for that to happen, Change the status of Production Order as finished. And run post inventory costs to G/L batch job if Automatic cost posting is not checked in ur Inventory Setup.
All variances would be visible.
- My material variance (57100) and Capacity Variance (57200) accounts are specified under Inventory setup for all the locations.
- My Finished Item and its Components are setup with Standard Costing method.
- Automatic cost posting is checked in.
- Released production order is changed in to Finished.
Finished Order Statistics shows me a Material cost variance and a capacity cost variance.
But still my related accounts 57100 and 57200 are at zero.
What could be the setting / Step I’m missing here in order to populate those 2 accounts with a balance related to variance?
Please help me with your kind suggestion.
You have checked Automatic Cost Posting
Ur costing method for Finished Good is Standard
U have posted different quantity of material as specified in BOM
U have posted different capacity times as specified in Routing and i am assuming u have no modifications.
If all this is yes then last thing which i assume must be there is , u must be having Never selected in Automatic Cost Adjustment in Inventory Posting Setup selected. Fill that as Always for time being and repeat.
At last it works and I’m thrilled seeing a balance in the variance accounts. [:)]
Changing Automatic Cost Adjustment from Never to Always gave me the right result.
Much appreciate your patience had throughout my list of quarries.
Just wanted to confirm with you, if I select the other costing methods also I still don’t have to change anything else from this setup to see the result. As you advised I would use the Production Order Statistics report to see the result.
It worked but i would suggest you to go through the reasons why this change made the variance visible. [:)]
Appreciate the suggetion. That would be one thing out of my next priority list.
And hope you would verify my answer then…[:)]