Variance Accounts in MISys Manufacturing Software.

If you’re using MISys with AVG or STD Costings methods (or even FIFO) – you may want some clarification on exactly what these variance accounts are for and when are they used in transactions.

A grid describing each of those variance accounts is below:

You’ll note that Purchase Price Variance and Assembly Variance will be heavily transacted against when using either STD or AVG Costing because there is always a previous value that a receiving or production entry must be compared against. Cost Adjustment Variance will be heavily used in AVG Costing because each production or receiving entry will transact and revalue inventory based on a newly calculated avg cost. It will only be used in STD when a cost adjustment is manually made.

The Physical Inventory Variance will be used only when conducting a physical inventory count in MISys through the Stock Control Process.

If you have any further questions on these variance accounts, please feel free to reach out to us.

Dean.