Create a Variance History File in the Common Information module that would store the line item details of price variances from Purchase Order (PO No, Item No. Trans # and Date, PO Cost, Invoice Cost, Qty, etc.) and the normal variances that occur due to the use of the Standard Cost valuation method when receiving from PO, BM and WO transactions. Business Reasons: Current PO and WO Variance reports are generated transactionally and cannot be reprinted. The data is also not stored in such a way to allow a Crystal report to provide this data. When attempting to reconcile and/or explain to management the reasons for the amounts in the Purchase Variance and/or Mfg Variance GL accounts at month end, it requires you to manually sort through all the variance registers and cost ledgers collected throughout the month and manually extract the data needed, which is extremely time consuming. Variance info for Standard Cost valuation items would be useful for the same reasons, allowing management to see the line items that make up the variance account balance and gauge the ability of the purchasing staff to control or reduce costs. This would be a tremendous time saving addition to the software.
by: Jeff L. | over a year ago | Sales & Distribution
Comments
I strongly agree with this recommendation. If I could add that variances should be recorded at the time of invoicing whether partial or full. The idea that the variance will be held until completion is problematic for accounting and matching.