Unexpected Quantity and Substitution variance is generated on the Production orders when using Resource groups on the route.
The Resource requirement for the route operation is set for a resource group. The standard cost is calculated considering the resource group as the resource (Item/Resource column)
When the production order is scheduled, the actual resource (which is part of the resource group) that will be performing the operation is suggested. Therefore, the realized cost for the production order is based on the consumption of the routing operation performed by the actual resource.
When ending the production order the system incorrectly calculates Quantity and Substitution variance due to the fact that the standard cost calculation includes resource group while the realized cost includes the actual resource.
Given that the resource group and the resource have the same cost categories configured, the system shouldn't provide any variance in this scenario.