Hi Pam,

If you see the 'Cost Variance' column on the OE Invoice (or Credit note) audit list, this means that your Inventory items use the 'Standard Costing' method of costing items. This is defined through the Control Account Set assigned to your items. If the Most Recent Cost and Standard Cost of an item is different, then the difference will be assigned to the Cost Variance column and the associated GL account as defined on the Control Account Set.

For those items that are generating a Cost Variance from OE Day End Processing, the Most Recent Cost of the items do not equal the Standard Cost, and the way OE is working is correct and by design. If you do not want to see a Cost Variance, you need to either ensure that the Most Recent Cost is the same as Standard Cost for all items, or use a different costing method for your items, such as Moving Average.

In the latter option, I would not recommend changing your items Costing Method until you speak to your Adagio consultant.

Receiving goods (through IC receipts or PO purchase orders or receipts) can change the Most Recent Cost of an item, so perhaps this is why you are seeing a Cost Variance in OE.