I’m reading the manual on cost variance and it gives an example where they are not using POP or SOP but rather are making manual adjustments to inventory. It states if you sell more then you have in stock which creates an override, then you later receive more inventory, when you post the increase adjustment a Cost Variance Journal prints and they say you must make a manual adjustment to the GL. If using POP & SOP and there is a cost variance for an override, do we still need to make a manual adjustment to the GL for the variance or is it automatically posted for us? I haven’t had to deal with this situation yet and I’d like to be prepared. Thanks!
JDM
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