1. Product Costing and Manufacturing Accounting Implementation Guide
  2. Standard Costing

Standard Costing

When you update labor and machine hours, the system multiplies the hours by the frozen work center rates to calculate the amounts. The units and amounts are stored as unaccounted units and unaccounted amounts in the Work Order Routing table. The Manufacturing Accounting Journal Entries program uses this information to generate IH journal entries.

When you run the Variance Journal Entries program (R31804), the program compares the reported cost of materials and labor to the cost of materials and labor that is specified on the work order parts list and routing instructions. If a discrepancy exists, the program updates the actual variance in the Production Cost table.