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Cost variance account?
Posted: Mon Oct 08, 2007 8:51 am
by qamer.financial
PO Distribution created three accounts cost variance, Inv valuation, Receiving Inspection. can any body tell why its created a Cost variance account
Posted: Fri Oct 12, 2007 10:38 am
by sivasubbusn
If your Organization is Standard Costing Organization then Purchase price variance account will get hit.
Posted: Tue Oct 16, 2007 8:02 am
by qamer.financial
Hi
.
We are using Average costing Method. Can you please desc in wat scenario it will generate Cost variance account
Regards,
Posted: Tue Oct 16, 2007 8:35 am
by sivasubbusn
HI,
If your organization is Average costing organization and if you have enabled "Allow Negative Balances" in the Organization parameter then cost variance account will get hit. This will work as follows.
1. If your on-hand qty is -10 (Negative)
2. You are receiving 20 Nos against a purchase Order.
3. 10 Nos cost get adjusted against the -10 (Negative) transaction cost
and difference will get hit the cost variance account.
Hope it is clear now.
Posted: Thu Oct 18, 2007 5:38 am
by qamer.financial
Hi
Its not checked the Negative balance allow in Inv Parameters.
Posted: Sat Oct 20, 2007 12:04 am
by sivasubbusn
Already do u had any negative inventory for that item ?