Chart of Account

[Former Member]

Hi All all of You

How we manage Materials variance Account(For item )

When we create Goods receipt Purchase order then three gournal ledger hit.

1.materials & consumable Debit A/c

2.good received not invoiced Credit A/c

3.materials variance Debit A/c

what is the role of Materials varience G/L

in witch time materials variance G/L will be Credit after Goods receipt ???

And same materials & consumable G/L will be Credit after Goods receipt ???

Because at the time of invoice only good received not invoiced G/L Debit and vendor account Credit

Can we take materials & consumable as a individual raw materials A/c .for total information of raw materials(Price)????

[lorna_real · Accepted solution]

Hello Sandeep,

The Variance account is used when you use the Standard Costing. Please check the valuation method for the item in the Stock Data tab.

If it is Standard, any difference between the actual cost and the Standard cost defined will be posted to the Variance account.

Regards,

Lorna Real

[former_member186095]

Sandeep,

Pls read this thread which is possibly able to resolve your issue:

let me know if not resolve

Rgds,