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May 18, 2020 at 01:40 AM

Production order variance affect on P&L statement

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Dear Experts,

I understood the concept of roduction orders variance means Actual debit of the order - Credit of the order , The difference is called as a variance

But my doubt is when I do the settlement, accounting entry will flow to FI.

Production variance Dr

COGM Cr

These both accounts are P&L accounts , so what is the Impact on P&L statement?

Thanks & regards

Tirupathirao.