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Cost Variance Posting Date

  • 1.  Cost Variance Posting Date

    Posted 14 days ago
    We recently had a Receiving batch that was posted and generated a cost variance journal entry.  That makes sense, as two of the items received differed in cost from the PO's original costs.  What doesn't make sense, at least on the outset, is the transaction date for the cost variance journal entry.

    The original batch had a posting date of 1/3/20, with individual transactions covering several days in November 2019.  The receipt that caused the cost variance had a transaction date of 11/6/19, and that's what the cost variance journal entry inherited.  Because the receiving batch is marked in the posting setup to post through to the GL, the cost variance journal entry got hung up in batch recovery because the November 2019 period was closed.

    My question is why did GP use the receipt transaction date when creating the cost variance journal entry instead of using the batch date?  Is there a valid reason, or if not is there a way to avoid the cost variance journal entries in the future from trying to post to closed periods in the same circumstance?

    Thanks,

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    Arthur Stewart
    Lutz FL
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    Conference-GPUG_200x200


  • 2.  RE: Cost Variance Posting Date

    Posted 13 days ago
    If you're using FIFO it will always try to hit the original receipt; but as you said since the fiscal period is closed it will hit batch recovery, you'll need to post it manually to the current period.

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    Aaron Esping
    Mid Kansas Cooperative
    Moundridge KS
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    Conference-GPUG_200x200


  • 3.  RE: Cost Variance Posting Date

    Posted 13 days ago
    Aaron, that actually makes sense.  We are FIFO, and of course the variance would try to reflect the original date.  Thanks for pointing out what should have been more obvious to me earlier.

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    Arthur Stewart
    Lutz FL
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    Conference-GPUG_200x200


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