Costing and reports
Analyse production cost variances
Compare the estimated and actual cost of completed work orders over a period, see which orders ran over or under budget, and export the results.
2 min readLast updated
In this article
The variance report shows how well your estimates match reality. For every work order completed in the period, it compares the cost estimated when the order was created with the actual cost settled at completion. Persistent gaps tell you which BOMs or routings need updating.
Steps
Open Manufacturing › Costing & Reports › Production Reports. The Manufacturing Variance Report opens.
Set the period with From and To. Until you choose a range, the page shows Select a date range to run the variance report.
Optionally type a work order number in the search box.
Read the summary
Total Work Orders: the completed orders in the period, split into Favourable, Unfavourable and On budget.
Total Estimated and Total Actual: the sums for those orders.
Net Variance: the total estimate minus the total actual cost.
Read the table
Variance by Work Order has one line per completed order:
Order #, Product, Completed qty and the date Completed.
Estimated: the original estimate scaled to the quantity actually completed. An order planned for 100 units and closed at 80 is compared with 80% of its estimate.
Actual, with its Material, Labor and Overhead parts.
Variance and Variance %: estimate minus actual. A positive figure is favourable: the order cost less than expected.
Efficiency %: the actual cost as a percentage of the estimate. Under 100% means cheaper than planned.
The note on the page reminds you that labor is part of the product cost, not a separate overhead line, and that the report is a management measure. It is never posted to the general ledger.
Export
Use Export to download the table as Excel, CSV or PDF, or Copy it to paste elsewhere.
Act on the variances
Material variance that repeats points to BOM quantities or scrap percentages that no longer match the floor. Clone the BOM and correct it.
Labor or overhead variance that repeats points to routing times or rates. Create a new routing version.
One-off variances usually come from a specific order. Check its Activity and Production Notes tabs.
Common questions
Why is an order missing? Only completed orders with a completed quantity above zero, finished within the period and in your branch, are listed.
Does the report change any figures? No. It only reads completed orders.