Hi,

How is purchase variance, inventory variance and production result are calculated under integrated system

thanks

Purchase result is calculated when an invoice that has been matched to a receipt is approved. No postings unless the receipt price is different to the invoice price. (The receipt price is normally the standard cost but may differ depending on set-up)

Inventory variance is calculated when you run the cost price calculation. If a standard cost has changed then the inventory of that item is revalued.

Production result happens when the production costs are different to what has been expected/estimated based on standard costs.

Thanks a lot.

Can you please explain Prod. Res. with an example with Double entry system

Regards
babu

See attached table, hope this helps. I've shown the postings in two ways - by transaction and by production.

In our set-up we only have a production result if the production order is anonymous (ie NOT project controlled)

Thank you
Take Care
Bye