The Inventory Variance Audit Report prints the detail for the IV application on the Daily General Ledger Transaction Audit.  The IV application is Inventory Variance.  A variance in inventory occurs when a P order is entered into the system and received but not vouched.  In the meantime, a fulfillment order is shipped and billed.  The cost on an F order is the average cost.  If the P order, previously not vouched, changes the average cost for an item that is on the F order, an inventory variance is created.  The variance will not show on the Daily General Ledger Transaction Audit until the P order closes.  This is why the closing of the P orders is so important.

Report Setup

G/L Account.  Enter the General Ledger account for which the variances are to be analyzed.  If the Chart of Accounts is departmentalized, variances can be charged to different Inventory and Cost of Goods Sold accounts.  To capture all variances on a report, press Enter.

Starting and Ending Date.  Enter the date range for the report to print.

The report will print the following information:

G/L.  General Ledger account requested.

Date.  Date the variance occurred.

Prog.  The program the variance occurred in.

Item.  The item whose average cost change caused the variance.

Order.  The fulfillment order that caused the variance.

PO.  The P order that caused the variance.

Qty.  Quantity of the item causing variance.

Old Ave.  Average cost showing of the F order causing variance.

New Ave.  New average cost recalculated by the closing of the P order referenced in the PO field.

Variance. The difference between the old average cost and the new average cost multiplied by the quantity.