Manufacturing Variance Account When Closing a Manufacturing Order

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Where does the system pull the Variance - Material Account from when closing a Manufacturing Order?


When a Manufacturing Order is closed, variances are calculated at that time. Any Variance Account will be pulled from the finished good item.

If the finished good is a Standard Cost Account, the Variance amount will be broken down to the nine different cost buckets:

1. Material

2. Material Fixed Overhead

3. Material Variable overhead

4. Labor

5. Labor Fixed Overhead

6. Labor Variable Overhead

7. Machine

8. Machine Fixed Overhead

9. Machine Variable Overhead

If the Manufacturing Order is for an actual cost finished good, only the Variance - Material Account will be used.

All Variance accounts are being pulled from the finished good item.

This article was TechKnowledge Document ID:31743