R31804 - Processing options Tab - Sales Order - How it works ?

Hello,

Curious to know about R31804 PO Tab Sales order.

Requirement is as below.

On Running manufacturing accounting system  generates variances.

Query is that cogs (Expense) are booked when we sale item but  variance is  booked on whole FG (Manufacturred). whether it is sold or not so if they show all variance with cogs their expenses are overbooked as they have not sold some inventory.

Variance should be adjusted in cogs at the time of sale automatically or we want to know how much variance is used in sale so that they can enter a JE at month end to adjust variance & cogs.