Instead of WIP, variance is getting calculated

Hi,

In a basic production order scenario. I have done the goods issue to Production order. There is no activity to be confirmed.

After doing goods issue below is the cost trend in the production order.

During GI The entry is Inventory account for Raw mat(BSX) Cr

Consumption account(GBB)(Production order) Dr

Now, at this point, when I run WIP, and then variance calculation and settlement ,

I expect the below entry,

WIP adjustment(balance sheet) Dr

WIP offset account(P&L) Cr

But instead of that, I am getting the entry for variance

That is Price Difference Account (PRD) Dr

Consumption accoun(GBB)(Production Order) Cr.

Please let me know, the reason of this behaviour. Is this, because of the WIP related config?

Also, please note that the status of the order is REL .

Please let me know why system is posting variance instead of WIP.

Regards

SR