SAP B1 – Variance Report format:

This Blog explains in detail about the variance report at the end of a production process in SAP Business One. If the production order is finalized and closed, again to view the various reports, including the variance report and the final transaction of the production order, the summary tab is being navigated. Looking at the total variance report yet again, the variance report shows number of things like type number and description. There are 3 columns in the variance report which shows the various inputs and outputs of the production order. These include item, components and resources that are consumed. The products and by-products that are produced as a result of completing the production order, and any revaluation journals, that are made to do with variances that arise during the production process.

The quantity column identifies the consumed quantity of the components, resources and the products produced. The average cost provides with values that come from the system based on the costing method that is employed in the organization, such as moving average. For example, the total is the actual cost which was incurred in the production order. And then there is an estimated total, which is the expected cost that should have been incurred in the production order. The variance column provides the difference between the total and estimated total columns. This variance arises because of under or over consumption of components or resources.

The last line of the variance report which is the product revaluation, denotes the final transaction which was added to the production order by the act of closing the production order. This removes the variance in this production order by revaluing the end product. By going through the final transaction in detail by drilling down into the journal entry, the journal should reflect the stock revaluation by the different variants amounts, and any by-products created in the production process. This is done by an intermediary account. Finally, how to review the variance report at the end of a production process and any related journal entries has been thoroughly demonstrated.

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