If I understand correctly, when labor or material costs are added to a job after the manufacturing receipt to inventory transaction, those costs are posted to the Variance GL account rather than the Cost of Goods Sold account. This makes sense to me but I can't quite figure out the timing. It seems in some instances these costs don't post to the Variance GL account until the job is closed and sometimes they post even when the job is still open.
I know it is the Capture COS/WIP Activity function that actually triggers the post to the variance account. But can anyone tell me if the job closing factors in somehow? I thought these costs would not post to variance unless the job was closed and Capture COS/WIP was run but I am seeing this happen even with open jobs.
Thanks,
Aimee
I know it is the Capture COS/WIP Activity function that actually triggers the post to the variance account. But can anyone tell me if the job closing factors in somehow? I thought these costs would not post to variance unless the job was closed and Capture COS/WIP was run but I am seeing this happen even with open jobs.
Thanks,
Aimee