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Jan 19, 2012 at 04:46 AM

Material Ledger - Variance

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Hi,

We have acivated material ledger .

Now against a PO, if I do a GR, some amount is going to Variance account.

1.How this is happening?

Now immediately if I do a second GR for same qty, the amount going to variance account is different.

Which I mean to say is, I dont think this is based on exchange rate differences.

2.How come this variance comes?

3.What should ne the actual accounting if Material ledger is activated?

please advice.

Thanks,