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Applies to Product - Dynamics 365 Business Central
 

What’s happening?
The customer is experiencing an issue where the Material, Capacity, and Capacity OH Variances are not calculating the "True" variance per type in Dynamics 365 Business Central. While the total variance is correct when summed, it is not accurate per variance type.
 

Reason:
This may be related to the configuration of the variance calculation settings in Dynamics 365 Business Central, particularly how the system handles the posting of variances and the influence of customizations or extensions.
 

Resolution:

  1. Verify Variance Calculation Settings: Ensure that the correct Raw Material, Capacity, and Capacity Overhead settings are configured for accurate variance calculations.
  2. Check Costing Method: Review the costing method being used (such as FIFO, Weighted Average, or Standard Costing) to ensure it aligns with the organization's expectations for variance calculation.
  3. Inspect Extensions: Check for any extensions that may be affecting the variance calculations. Send a screenshot of the extension sections on the Production Order creation page to analyze the behavior of the extensions.
  4. Review Variance Posting Configuration: Ensure that the correct accounts are used for the different types of variances (material, labor, etc.) in the variance posting setup.
  5. Consult Documentation: For further clarification on how variance posting works, refer to the official documentation regarding inventory costing and variance posting in Business Central. Key resources include:
  6. About calculating standard cost - Business Central
  7. Design Details - Variance - Business Central
If the issue persists after following these steps, further investigation may be required to determine if the problem is due to customizations or other factors.