Labor Cost Clarification
Dear Srini,
Need some clarification on labor cost variance in work order details page
Labor required quantity entered as 4 but the actual charged is 10 hours ,Remaining has been shown as variance in work order details page
As per my understanding this variance to only validate the difference between actual and estimation and no accounting impact on this
since the the total cost of the work order will be consider as on variance for EAM that too in period close variance not an job close variance
Now higher management asking why the variance in labor cost when required labor hours are less than actual hours as described above