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Balance in project cost variance account

Hi @all,

As a part of job costing in projects, when employee timesheets are posted, a journal entry is created debiting the Direct/ indirect labor account(Based on the project expense type) and crediting the project cost variance account.

 How can we offset the amount in the project cost variance account? Since its liability, it will keep on getting high.

What is the benefit of using a project cost variance account? How does NetSuite suggest making use of this account in project accounting? Does it have any impact on the payroll module? We are not using the payroll module instead only using the journal entries.

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