This option allows for the standard costing variance to be broken down into variances on price changes between received and invoiced, freight, duty and FX transaction rate differences. The logic is based on the fact that standard costing is calculated as Suppliers Home Cost plus freight and duty percentage component.
Use Cost of Goods Ledger = Yes
Use Rounding = No
Post Purchase Tax = No
Use Foreign Exchange = No
Use Standard Costing = Yes
Break Down Variance =Yes
Use Warehouse Masking = No
The freight and duty charges have been deleted from this example. They form part of the standard costs. These figures are used in the journal examples that follow.
All items are received as ordered. An insurance fee for the purchase order is to entered in the Totals grid of the form
Insurance $10.00
The invoice from the supplier notes a price change to Part A. There are only 50 of these items remaining in stock on hand.
New Price - Part A Inc Tax Price $1.38
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