Cost variances

What are cost variances?

Rounding or cost of goods sold wash-ups are referred to as cost variances.

The system computes product cost variances in the following ways:

1. Rounding differences in cost calculations
2. Products sold before import costings are posted

Rounding differences in cost calculations

The number of precision or decimal places of product unit costs and selling prices is set to 3 by default.

Because of this, the resulting product value can be slightly off due to the rounding differences.