Reply To: Production Material Variances

  • Marni Stallings

    Member
    March 20, 2023 at 10:45 am
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    One more thing…if you are using STD cost and you do not have a roll up query to find items where the roll up does not equal the STD cost on the item card, you will continue to have variances at every output where they are not equal. We have too many items to roll up costs on all items, so I have a query that I run that shows if any component STD cost changed and/or the BOM route was updated and cost was not rolled up. It used to be a huge issue when accounting did not control all of the changes, hence the query. Now our biggest driver of variances is where STD cost changes on components or changes to BOM/Routes occur in the middle of a run. The variance will post once the PDR is finished. No way around it unless you close out all PDR’s, make changes, roll cost and then create new PDRs. We accept the small variances on the runs for these situations because we try to keep our runs relatively short.

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