Cost sub-elements defined as OVERHEAD go to the 'Purchase price variance or rate variance' at PO rec
I have a question for you on Overhead cost element.
Problem Description:
We created an item with 3 cost elements: MATERIAL, MATERIAL OVERHEAD and OVERHEAD. Now when we receive that item against a PO, the cost sub-elements defined as MATERIAL OVERHEAD go to the 'Overhead absorption'; however, the cost sub-element defined as OVERHEAD go to the 'Purchase price variance or rate variance'.
The OVERHEAD cost element should also go to the 'Overhead absorption' accounting type and the account.
It’s not only going to incorrect accounts on the Purchasing/Receiving side, it’s also behaving incorrectly at the time of ship confirmation. At the time of ship confirmation instead of debiting the Deferred COGS accounts, it is debiting the 'finished goods overhead account.