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Former Member
Dec 08, 2008 at 11:53 AM

Variance account for non-inventory items

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Dear All,

Can we use Variance account for non-inventory items in SBO?

The company is introducing SBO for purchasing only at this stage, so we are not planning to manage stock yet, nor use anything for sales but invoices processing.

The accounting method has been set as "standard" and managed by "item groups", and relevant G/L accounts have been defined i.e. allocation, expense, stock, variance account etc.

When I went through P/O, GRN, AP invoice, only one journal was created by invoice document, and nothing went into that variance account (or allocation account), although the item price had been varied through the process.

Thus, I suspect that we have to maintain stock system in order to track purchase variances, is that correct?

Can anyone please give more understanding?

Thank you very much.