· Non-Inventory, Service and Other Charge items were assigned as members of an Assembly item to capture incidental cost related to building of the assembly
· GL impact posts the related cost of the items to Production Price Variance instead of the assigned Expense Account in their respective item records
· Inventory Cost Revaluation has been done for the assembly item through either
o Lists > Accounting > Revalue Standard Cost Inventory when using a Planned Standard Cost; or
o Transactions > Inventory > Revalue Inventory Cost
Explanation and Solution:
Non-inventory items (Non-Inventory, Service and Other Charge) do not have a standard cost. The production price variance is generated based on the difference between the assigned value of the non-inventory component item in the cost revaluation of the assembly and the actual cost of the non-inventory item.
This scenario is encountered unless the following steps are taken:
1. Edit the item record(s).
2. Go to the Basic tab.
3. Assign a value in the Purchase Price field.
4. Hit Save.
Note: After assigning a Purchase Price the existing Assembly Builds need to be deleted and new ones to be created in case the change is not reflected.