{"id":5725,"date":"2013-12-30T07:07:04","date_gmt":"2013-12-30T07:07:04","guid":{"rendered":"http:\/\/www.greytrix.com\/blogs\/sageaccpacerp\/?p=5725"},"modified":"2013-12-30T07:07:04","modified_gmt":"2013-12-30T07:07:04","slug":"cost-variance-analysis-in-sage-300-erp","status":"publish","type":"post","link":"https:\/\/www.greytrix.com\/blogs\/sageaccpacerp\/2013\/12\/30\/cost-variance-analysis-in-sage-300-erp\/","title":{"rendered":"Cost Variance Analysis in Sage 300 ERP"},"content":{"rendered":"<p style=\"text-align: justify\">Cost Variance analysis is control system that is developed by organizations to detect and correct variance from expected level in Inventory costs. Variance analysis is usually associated with derived difference between actual cost and the standard cost defined by organization for good output. There can be multiple factors contributing to form these variances like, Difference in Material costs can be due to material price variance and material usage variance. Similarly the difference between labor cost and standard labor cost can be due to rate variance and efficiency variance.<\/p>\n<p style=\"text-align: justify\">Variance analysis helps management to understand the present cost and then to control the future cost of material, labor and overheads and also prepare pricing strategies accordingly.<\/p>\n<p style=\"text-align: justify\">With the help of following configuration you can track cost variance in Sage 300 ERP.<\/p>\n<p style=\"text-align: justify\"><strong>1. Configuration of Cost Variance account in Category<\/strong><\/p>\n<p style=\"text-align: justify\"><a href=\"https:\/\/www.greytrix.com\/blogs\/sageaccpacerp\/wp-content\/uploads\/2013\/12\/Untitled17.png\" target=\"_blank\"><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter  wp-image-5726\" alt=\"Cost Variance\" src=\"https:\/\/www.greytrix.com\/blogs\/sageaccpacerp\/wp-content\/uploads\/2013\/12\/Untitled17.png\" width=\"482\" height=\"319\" \/><\/a><\/p>\n<p style=\"text-align: justify\"><strong>2. Mapping of Standard cost Account set and Category for items for which you want to configure standard costing method.<\/strong><\/p>\n<p style=\"text-align: justify\"><a href=\"https:\/\/www.greytrix.com\/blogs\/sageaccpacerp\/wp-content\/uploads\/2013\/12\/Untitled18.png\" target=\"_blank\"><img decoding=\"async\" class=\"aligncenter  wp-image-5727\" alt=\"Items\" src=\"https:\/\/www.greytrix.com\/blogs\/sageaccpacerp\/wp-content\/uploads\/2013\/12\/Untitled18.png\" width=\"491\" height=\"371\" \/><\/a><\/p>\n<p style=\"text-align: justify\"><strong>3. Fixing of standard cost to Inventory items<\/strong><\/p>\n<p style=\"text-align: justify\">Inventory control &gt;&gt; IC Items and price list &gt;&gt; Location details.<\/p>\n<p style=\"text-align: justify\"><a href=\"https:\/\/www.greytrix.com\/blogs\/sageaccpacerp\/wp-content\/uploads\/2013\/12\/Untitled19.png\" target=\"_blank\"><img decoding=\"async\" class=\"aligncenter  wp-image-5728\" alt=\"Location details\" src=\"https:\/\/www.greytrix.com\/blogs\/sageaccpacerp\/wp-content\/uploads\/2013\/12\/Untitled19.png\" width=\"474\" height=\"221\" \/><\/a><\/p>\n<p style=\"text-align: justify\">Following are the example of Journal entry posted by Accpac ERP for Cost Analysis.<\/p>\n<p style=\"text-align: justify\">In above case the standard cost defined by company for respective product is $ 85\/-, but due to drop in demand and excess supply in market the same material was purchased by company at $ 80\/-.<\/p>\n<p style=\"text-align: justify\">In this scenario following are the Journal entry created by Accpac on posting of PO Receipt entry.<\/p>\n<p style=\"text-align: center\"><a href=\"https:\/\/www.greytrix.com\/blogs\/sageaccpacerp\/wp-content\/uploads\/2013\/12\/Untitled21.png\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter  wp-image-5732\" alt=\"2\" src=\"https:\/\/www.greytrix.com\/blogs\/sageaccpacerp\/wp-content\/uploads\/2013\/12\/Untitled21.png\" width=\"506\" height=\"53\" \/><\/a><\/p>\n<p style=\"text-align: left\"><strong><em>New Stuff:\u00a0<\/em><\/strong><a title=\"Setting up Price Inclusive of Taxes in Sage 300 ERP\" href=\"https:\/\/www.greytrix.com\/blogs\/sageaccpacerp\/2013\/12\/30\/setting-up-price-inclusive-of-taxes-in-sage-300-erp\/\" target=\"_blank\">Setting up Price Inclusive of Taxes in Sage 300 ERP<\/a><\/p>\n<p>The same material sold by company with price $ 90\/-. Following are the Journal entry created by Accpac on Posting of OE Shipment entry.<br \/>\nNow since the standard cost defined for this item is 85 but actual cost incurred is 80 the variance of 5 needs to be adjusted. Here is how Sage 300 takes this variance to balance the debits and credits on both sides of entry.<\/p>\n<p style=\"text-align: center\"><a href=\"https:\/\/www.greytrix.com\/blogs\/sageaccpacerp\/wp-content\/uploads\/2013\/12\/Untitled20.png\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter  wp-image-5731\" alt=\"1\" src=\"https:\/\/www.greytrix.com\/blogs\/sageaccpacerp\/wp-content\/uploads\/2013\/12\/Untitled20.png\" width=\"508\" height=\"67\" \/><\/a><\/p>\n<p style=\"text-align: justify\">Cost variance analysis is vital for controlling cost and identifies ways for improving efficiency and profitability of organization.<\/p>\n<p style=\"text-align: justify\">Over a period of time this cost variance records can serve to analyse the trends of material cost and landed cost variations and factors that contribute to it to plan product pricing, and positioning strategies.<\/p>\n<p style=\"text-align: justify\"><strong>Also read:<\/strong><\/p>\n<p><strong>1.<\/strong>\u00a0<a title=\"Adjustment Entry in Inventory Control\" href=\"https:\/\/www.greytrix.com\/blogs\/sageaccpacerp\/2013\/08\/31\/adjustment-entry-in-inventory-control\/\" target=\"_blank\">Adjustment Entry in Inventory Control<\/a><br \/>\n<strong>2<\/strong>.<a title=\"How to handle Inventory Receipt in Sage 300 ERP?\" href=\"https:\/\/www.greytrix.com\/blogs\/sageaccpacerp\/2013\/12\/19\/how-to-handle-inventory-receipt-in-sage-300-erp\/\" target=\"_blank\">\u00a0How to handle Inventory Receipt in Sage 300 ERP?<\/a><br \/>\n<strong>3<\/strong>.\u00a0<a title=\"Standard cost functionality in Sage 300 ERP\" href=\"https:\/\/www.greytrix.com\/blogs\/sageaccpacerp\/2013\/11\/18\/standard-cost-functionality-in-sage-300-erp\/\" target=\"_blank\">Standard cost functionality in Sage 300 ERP<\/a><br \/>\n<strong>4<\/strong>.\u00a0<a title=\"Defining Specific Location for an Inventory Item in Sage 300 ERP\" href=\"https:\/\/www.greytrix.com\/blogs\/sageaccpacerp\/2013\/10\/28\/defining-specific-location-for-an-inventory-item-in-sage-300-erp\/\" target=\"_blank\">Defining Specific Location for an Inventory Item in Sage 300 ERP<\/a><br \/>\n<strong>5.\u00a0<\/strong><a title=\"Different Costing methods in Sage 300 ERP\" href=\"https:\/\/www.greytrix.com\/blogs\/sageaccpacerp\/2013\/07\/30\/different-costing-methods-in-sage-300-erp\/\" target=\"_blank\">Different Costing methods in Sage 300 ERP<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cost Variance analysis is control system that is developed by organizations to detect and correct variance from expected level in Inventory costs. Variance analysis is usually associated with derived difference between actual cost and the standard cost defined by organization for good output. There can be multiple factors contributing to form these variances like, Difference\u2026 <span class=\"read-more\"><a href=\"https:\/\/www.greytrix.com\/blogs\/sageaccpacerp\/2013\/12\/30\/cost-variance-analysis-in-sage-300-erp\/\">Read More &raquo;<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[79,565,567,877,2357,2735,2973],"class_list":["post-5725","post","type-post","status-publish","format-standard","hentry","category-sage-accpac","tag-accpac","tag-cost-variance","tag-costing-method","tag-erp","tag-sage-300-erp","tag-standard-cost","tag-variance-analysis"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Cost Variance Analysis in Sage 300 ERP - Sage 300 ERP \u2013 Tips, Tricks and Components<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.greytrix.com\/blogs\/sageaccpacerp\/2013\/12\/30\/cost-variance-analysis-in-sage-300-erp\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Cost Variance Analysis in Sage 300 ERP - Sage 300 ERP \u2013 Tips, Tricks and Components\" \/>\n<meta property=\"og:description\" content=\"Cost Variance analysis is control system that is developed by organizations to detect and correct variance from expected level in Inventory costs. 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