Today, when using the Standard Cost Costing Method, when Adjust Cost posts my Manufacturing variances, for Sub-Assembly Item in a Bill of Material, it will take the TOTAL (Material, Capacity, + Overhead) and place the total cost under Material, which will distort the TRUE Variance for Accounting. I know you can use the Cost Shares to see the Single and Rolled-Up, but for posting it uses the Single Level costs to calculate my variance. This is misleading since the variance could be all Capacity and Overhead and requires someone to take time to analyze the entry back to the Production Order back the Cost Shares.
Could we have an Option, on the Manufacturing Setup that allows for Single or Rolled-Up Variance posting.
Thanks,
Steve
Comments
Cannot agree enough Steve. It is essential that a company be able to choose how their production orders are costed and posted to the G/L (specifically material, capacity, and overhead variances). This would also make variance analysis much simpler in a standard costing environment. Business Central exposes single level and rolled up cost in multiple places in the system but does not allow for choosing which method will be used on production orders.
Category: Manufacturing
To see why it would be confusing, find an Item with multi-level BOM and run Cost Shares to see the Rolled-Up columns and Single and you will see Material under Single distorted to actual true Material cost.
Category: Manufacturing
Business Central Team (administrator)
Thank you for this suggestion! Currently this is not on our roadmap. We are tracking this idea and if it gathers more votes and comments we will consider it in the future. Best regards, Business Central Team