Issue experienced in Production Order Costing: We are seeing an unexpected Quantity and Substitution variance on Production orders using Resource groups and Job scheduling on the Route. We are seeing the Estimated consumption being calculated on the Resource group level, but the realized consumption is being calculated on the Resource group. This causes a Quantity and Substitution variance that is not valid. There is no actual variance in this scenario.

This was explained to Microsoft and the response is described as depicted below:

Microsoft Remarks: The core team has investigated this support case and resolved it as by-design. The resource requirement for the production route operation is set for a resource group. During estimation the cost categories from the resource group will be selected. When the production order is later scheduled the resource is resolved, and the cost categories from that resource will be used for calculating realized cost. If there is a difference between the setup of the cost categories between the resource group and the resource, then a variance will occur. Consider using a costing resource on the route operation to avoid the cost variances. 

This issue has been experienced many time in the past and continues to be experienced on many global, highly visible implementations at as I experienced recently on Finlays project here in RI, USA. Hence, this issue needs to be urgently resolved in the core design of D365 F&O.

Issue has already been well documented here: https://fix.lcs.dynamics.com/Issue/Details?bugId=444138&dbType=3&qc=297dd25be624986fb81d087532d29b9e5b99fe1000c201a5a5c1a132f2516fe8

Please have this issue resolved asap. Many global and visible customers will be pleased to see this happen.