cost variance vs average cost difference in the F43121

Hi,

I am trying to understand the data in the F43121. There are two cost
variance fields AVCO (average cost difference) and VARC (cost variance).
These amounts are often the same but not always. I am looking for
documentation on these fields as to how they relate and what calculations
they use. Any information would be much apprciated.

Thanks,
Nicole

From the Knowledge Garden the following may help:

Generally, when there is difference in costs during voucher match.
VARC in F43121 is updated generally when there is any difference in costs
during Voucher Matching process.
For example:
In p0411 / p4314 3 way match, we compare the voucher match amounts with the
amounts in
(F43121) Receiver table from the receipts and any variance is accordingly
booked
to VARC field.
For 2-way match, the voucher match amounts is compared with the amounts in
(F4311) Purchase order detail table.

2 -
Per SAR 5071051 (JD18810) AVCO will store the amount that affects Inventory.
If On-Hand is less than Voucher Match Quantity and there is Voucher amount
difference, the amount updated to VARC and AVCO will be different.
For example:
If Amount To Match is changed from 100 to 150, with Voucher Match Quantity
10
but On Hand Qty 8,
the values updated should be:
VARC = 50 ; AVCO = 40






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Thank you so much! That clears it up for me completely. I looked on the
knowledge garden and could find nothing. Do you have a white paper that you
could direct me to?

No paper that mentions these field by name, however, the AAI's populate
these fields and there are numerous white papers on those. AAI 4332 drive
the variances so consider the following:

ODS-01-0088 Purpose and Impact of 4332 AAI
ODS-01-0082 Accounting in Purchasing
WDS-01-0016 Accounting in Purchasing Overview

and there may be others that are helpful.




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thank you