Expected Cost: Material
The material section of the report lists all the components associated with the work order.
The Expected Cost is:
(Qty Complete + Qty Reject) * Frozen Qty Per * Frozen Std Cost
If this amount is zero, you probably did not receive or scrap anything against this work order. If you have received something and the value is still zero or the wrong value, then check the frozen quantity per and standard cost. These can be viewed and updated in Work Order Bill Maintenance (16.13.1).
Accrued Variance
The accrued variance is the variance the system has already recognized. It should be equal to the total of the rate variance posted and the usage variance posted columns.
Accumulated Cost: Material
The accumulated cost of material is the actual cost of the work order. It is the actual quantity issued multiplied by the standard cost that was in effect at the time of the issue.
Rate Variance Posted: Material
The material rate variance posted is the standard cost of the component at the time of issue minus the frozen standard cost of the components multiplied by the quantity issued. This is calculated at the point of issue.
• Favorable variances display as negatives
A negative indicates a credit balance. A credit balance for income statement accounts like variances are favorable.
• Unfavorable variances show as positives
Usage Variance Posted: Material
The material usage variance posted is calculated during an accounting close. If you have not run an accounting close, the usage variance will be zero.
The usage variance is the actual quantity used minus the quantity that should have been used multiplied by the frozen standard of the component:
• The quantity that should have been used is the quantity completed plus the quantity rejected multiplied by the frozen quantity per
• The frozen standard is used rather than the standard currently in effect because the rate variance already adjusted for the differential. If the current standard is used, it will effectively calculate the rate variance twice for the quantity over or under issued.
