Need understanding of Job Close Variances in this scenario
Summary:
In one of our Business scenario, we are trying to understand Variances for the same item in Process Manufacturing,
Scenario : Work Order with Single level Work Definition but Costing Rollup was performed with Dual level Work Definition
For the same FG item,
Single Level WD - All raw materials and packaging items were directly added as components in Work Definition
Dual Level WD - All the raw materials were added to a subassembly. Subassembly is added with packaging items as components instead of adding raw materials directly
Please help to provide clarification on below questions:
- Why its generated Component Substitution variance as Debit and Yield variance as credit ? and what is the logic behind it ?
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