Hello, On the OE day end report, part costs occasionaly will show a "cost varience" that reduces the cost of the part and alters the COGS [sometimes to -0-]. We know that average cost is affect by PO, however I stopped the integration of PO [which didn't work].

We have not been able to trace the origin of this issue, and it has become a make/break for the software.

I looked in the books, and on line with no help. Hopefully one of you can help. Also, I am hoping that the integration of PO will help resolve the issue.

~Pam

There are many reasons for this. The typical cause of this is because the item is sold before all of the costs are in. If an item gets sold for $1 but then the final cost is $1.10 you have a cost variance of $0.10. This has to be adjusted out manually. There are many other reasons for this to occur.

Using PO and proper receiving procedures will help to reduce the number of occurances but a fact of life is that inventory often gets sold before the cost is fully known.