Reply To: Production Material Variances

  • Tracy Hanson

    March 21, 2023 at 3:43 pm

    @amandamayer – in this scenario we are using standard costing. We do have some specific costing but those are not being questioned. After i posted this i was able to do some more digging and believe our BOM versions are playing a part in this. The BOM version our standard cost was set at is not the BOM version currently being used in production. I was able to identify in one case where there truly was no consumption variance based on the current active BOM version. The material variance posted to our GL and what showed in our value entries was truly the cost difference between the standard cost and the active BOM version. Our BOM versions change frequently throughout the year but we our policy is to only set costing once a year (with very few exceptions).

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