Route operation cost variance allocation
Reallocate the operation and indirect cost variances to cost of goods sold
Reallocate Your Operation and Indirect Cost Variances to Cost of Goods Sold
The operation and indirect Cost will be applied to Production Order with standard rates
When using actual Cost (FIFO-LIFO-Weighted Average - weighted average dated -LIFO dated)
- Materials is handled by Inventory closing to ensure items is applied with actual cost and this is reflected in Cost of Goods Sold
- For the Route operations and Indirect Cost, it will be applied with standard rate and by the month end when reaching the actual cost there will be variance which will not be reflected to the Cost OF Goods Sold.
- This module is doing that task where it reallocates the variance to the production order and hence it is reflecting the Cost Of Goods Sold same as the material standard behavior .