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There are however a couple of important differences. Under average costing average cost variances are generated when the total item quantity in the specified inventory organization is driven negative. Under project manufacturing costing average cost variances are generated when the total item quantity across all subinventories in a cost group is driven negative.
Another difference is that average cost variances generated in non-project manufacturing use the organization level Average Cost Variance account. Under project manufacturing costing, variances occurring in any project within a cost group are charged to Average Cost Variance account defined for that cost group.
Inventory Average Cost Transactions
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