Variance created on production order.

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Posted on by CU19121606-0

Hi Everyone,

I’ve been testing the variance issue in production orders on the STG environment using the item set to moving average costing. I’ve replicated all the scenarios shared with me by the end user and have attached them for your review.

Despite attempting the same scenario 20 times, I’ve only managed to create a variance once, and I’m unable to replicate it. Please review the attached scenarios and provide guidance on the following:

How can we reliably create a difference between manufacturing cost and manufacturing cost, WIP?
How can we identify when this issue is likely to arise?
What steps can we take to manage and mitigate this scenario effectively?
How can we create this scenario deliberately ?

Your assistance in resolving this matter will be greatly appreciated.

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Dynamics 365 Supply Chain Management

Production PPV qu...

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Dogan Adiyaman 678 User Group Leader on at

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Variance created on production order.

We don't have enough info to answer the question but I am going to do some assumptions.

Under Moving Average Costing, the total actual cost incurred in WIP is directly transferred to the Finished Goods Inventory.

There are no variances, as the Moving Average Cost dynamically adjusts to reflect actual production costs.

Once production is completed, all costs move from WIP to Finished Goods Inventory, and the difference disappears. This is unlike Standard Costing, where variances might create lasting differences.