Inventory Cost Variance to GL

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Posted on by Community Member Microsoft Employee

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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Frank Hamelly | MVP... 46,317 Super User 2025 Season 1 on at

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Re: Inventory Cost Variance to GL

Dan is right Jimmy. Beginning with GP 9, the variances post automatically.
Dan Liebl 7,320 on at

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Re: Inventory Cost Variance to GL

I think this depends on the version. GP 9 and later it should auto create. My experience is with SOP and POP, as well as Mfg, and in those environments, an adjustment is automatic. Do not know if inventory is a stand-alone, if it will do the same.

Dan Liebl, CMA CPIM | Senior Consultant | OTT,Inc | DLiebl@OTT-inc.com