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Small and medium business | Business Central, N...
Suggested Answer

How to Review Manufacturing Variances

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Posted on by 3,510

Hi:

I was in the Production Order List, after finishing a Released Production Order in Manufacturing, and chose to review "Value Entries".

Here, I noticed a few Variances.

So, I drilled into the "General Ledger" for these variances.

The G/L accounts were Material Variance and Manufacturing Overhead Variance.

During Manufacturing Processing, no changes were made to either the Consumption or Production.

So, how do I exactly determine the cause of these variances?

Thanks!

John

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  • Suggested answer
    Dallefeld Profile Picture
    211 User Group Leader on at

    Variances are generated when you are standard cost. So if you have material variances it means that the total costs from components was more or less than the rolledup material costs on the finished item. Manufacturing Overhead variance is also comparing the rolled up mfg overhead on the finished item to the mfg overhead cost from the work centers and creating plus or minus entries.

  • john.ellis Profile Picture
    3,510 on at

    Thank you, Kim!

    John

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