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GOAL

Why is there a variance distribution after closing the job ?

SOLUTION

Here is how the variance is calculated:

Material Variance = Previous Level Incurred - Previous Level Relieved

Material Incurred = Previous level Material Incurred + This level Material Incurred
Resource Incurred = Previous level Resource Incurred + This level Resource Incurred
Material Relieved = PreviousLevel Material Relieved + This Level Material Relieved
Resource Relieved = Previous Level Resouce Relieved + This Level Resource Relieved

The variance amount corresponding to the cost element goes out of the corresponding wip valuation
account in WIP valuation accounting line type.
But the accounting of accounting line type WIP Variance all the previous
level variances and the material overhead and material this level variance
hit the material variance account and other variance accounts are hit with their respective this
level variances.

You can get the details of Level in the tab level of WIP value summary
and the accounting type can be seen from transaction tab of distribution form