Best Practice for Handling Accumulated Cost Variance GL Balance in Oracle Fusion - Perpetual Average

Summary:

Hi Experts,

Noticed that Cost Variance accounting entries are generated in Oracle Fusion Cost Management (Perpetual Average Costing) for various transaction events such as Work Order Close, Transfer Order transactions, and other inventory transactions during every accounting period.

As a result, the balance in Cost Variance GL account continues to increase over time. We would like to understand how other organizations manage these Cost Variance balances and what the recommended approach is from both an Oracle Fusion and business process perspective.

We would appreciate insights on the following:

• How do organizations typically handle accumulated Cost Variance balances?
• Is it common practice to retain these balances in the Balance Sheet, or are they periodically cleared/reclassified?