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Account Alias Issue generates Cost Variance in Perpetual Average Costing

Summary: Below is the sequence of transactions performed on the item. During the Account Alias Issue transaction, we observed that a Cost Variance entry was generated for the same amount by which inventory was depleted. We would like to understand how this Cost Variance was generated. Please refer to the screenshot below for details.

Transaction Type

Transaction Cost

Qty

Average Cost

Account Alias Receipt

5,274.82

2

5274.82

Purchase Order Receipt

5,248.00

1

5265.88

Account Alias Receipt

0

2

3159.528

WIP Material Issue

3159.528

-1

3159.528

Cycle Count Adjustment

3159.528

-2

3159.528

Account Alias Issue

3159.528

-2

3159.528


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