Prodcut GL control - Variance

[JTBAQ (J T)]

Hi,
I’m wondering what actions trigger costs into these difference Variance in Account Context

thanks!

[ZanebK]

I’ve been looking to understand the same.

I did see these posts, which were useful for labour variances:

How to remove Manufacturing Variances. Looking for a workaround

Brooke, Labor cost variances happen a two different ways: Labor $ rate variances: Resource Group or Resource labor rates are used as estimates. Employee labor rates are used as actuals. If these two rates are not aligned this will create a labor cost variance. It is easy to forget to add the labor rate to the employee when new ones are setup. Labor time variances: The method operation time per piece versus the actual job operation time entered will also cause a variance. One way to eliminate …

How to remove Manufacturing Variances. Looking for a workaround

If you are 100% Average, then “normally” you should not see any variance IF all the transactions happen in the correct order: Job created Mtl Issued/Labor Reported Job received to stock at cost of all Mtl issued/labor reported in step two Job Closed - no balance in wip, no variance BUT… where you can get into trouble is if you dont complete things in the correct order Job created for 100 pieces $100 materials issued, $200 labor charged ($300 in wip) Receive 80 to stock - this moves $240 fr…

[timshuwy (Tim Shoemaker)]

variances can happen for multiple reasons in an average cost world:

1. transactions happening out of sequence… ie… you receive parts to stock, and then post additional labor/material
2. you have a PO for $1 each, but then when receiving, you adjust the cost on the receiver, or you adjust the cost on the Invoice to something other than $1.

In a standard cost world… variance happen all teh time. You have an item with a standard cost of $1, but you create a po for $1.5, it will post a variance of $0.50 when you do the receipt.

[LarsonSolutions (Bruce Larson)]

Epicor introduce the addition variance accounts I believe with 10.2.xxx
If you setup different accounts for Labor, Burden, Material and Subcontract you will find out what is getting transacted into the job’s after the job is received into inventory. This will then be on the general ledger vs just reviewing the inventory COS and WIP reconciliation report for the different transactions.