Cost Variances

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Some special circumstances apply when job cost lines and inventory lines allocated to a job are received using PO Entry, and subsequently invoiced using AP Invoice Entry, if a cost variance exists.

JC Purchase Order Lines

The treatment of receipt or invoice cost variances is determined based on the PO Module Control cost variance option.

Adjust Cost of Job

If you select this option, a cost variance transaction generates if the cost of the accounts payable (job cost) invoice line differs from the receipt cost of the same line. This cost updates the cost of the job, and displays in the Cost Transactions table on the Job Maintenance form.

Adjust General Ledger Only

If you select this option, the job cost does not update with any variance value. No transaction displays to reflect variances in the Cost Transactions table on the Job Maintenance form.

IN Purchase Order Lines, allocated to a Job

The JCPOAdj transaction type generates the cost variance transaction if an inventory line is being allocated to a job and the AP invoice cost differs from the purchase order receipt cost.

The variance updates to the cost of the job, and displays in the Cost Transactions table on the Job Maintenance form.

The transaction takes the form of a job cost general ledger cost adjustment, and Greentree Desktop assigns a transaction reference.

The line narration reflects the source of the transaction. The line quantity of the adjustment line always be 1.00, regardless of the original purchase order or accounts payable line quantity.

• AP Invoice GL Hierarchies
• PO Module Control
• IN Transaction Type Maintenance
• Costs GL

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