Accounting Rate Variance into COGS

[Leszek Bober]

Hi All

When a production is completed, and obviously, there are certain prodcts in BOM structure, the prodution is calculated according on the cost of each component. But when the cost of production differs from that cost (eg. more materials were used), a new account called Rate Variance appears with the difference in price.

Is there a mechanism that will take the cost of the product + the amount that's gone to the Rate Variance account and put them into COGS when the sale is made?

I'm use average of the invoices.

Regards

Leszek Bober

[Carlos Antonio Ruiz Gomez]

You can move from one account to another using GL distribution, but that
will not affect the cost, just the postings.

Regards,

Carlos Ruiz



Am 29.04.21 um 08:50 schrieb Leszek Bober:

> --

[Leszek Bober]

Hi Carlos

I would like to understand.

There is no mechanism that created the appropriate journal entries when posting a shipping?

Do I need to do Cost adjustment to update the cost?

Regards

Leszek Bober

[Carlos Antonio Ruiz Gomez]

Not sure about your specific case.

Have you tried "Average PO" - long time ago we did a deep review of costing and if I recall correctly one of the conclusions we arrived is that Average PO is the right method.  It was something like Average Invoice doesn't work correctly unless you implement some sort of estimates and correction, and when you implement that it becomes Average PO.

Regards,

Carlos Ruiz

Am 29.04.21 um 11:50 schrieb Leszek Bober:

[Orlando Curieles]

Hi all, I have a plugin for MFG and do this average cost without use the variance account, I'm working to move on 8.2 and make some documentation about the new features and will share with the community soon. 

 Best Regards, 

 Orlando

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