The Variance Manager is used to reconcile dispatched equipment to returned equipment. When the user creates the Variance Manager, the system creates one variance record per Job. The system will display, per Rental Equipment Item and Subjob, the total quantity that has been dispatched, returned and processed through variance transactions. This allows users to see what the outstanding variances are for that Job, and choose what they want to do with those variances.
The following processing options are available.
If the user chooses to write off the variance, the company is essentially absorbing the cost of that particular variance. For example, if a company dispatched 10 items and only 8 were returned, there is a variance of 2 which is the company’s problem and loss. The system will create a Goods Issue, clear those items out of the system and effectively 2 items of rental equipment have been lost on that Job.
Invoice the Variance to the Customer
With the same example of 10 dispatched items, 8 returned, and 2 outstanding, the company can now go through and choose to invoice those 2 items to the customers if they are responsible for losing them. Once again, the items will be removed from the company which mean the company only has 8 items remaining but instead of it being a direct cost to the company, it will be invoiced to the current customer.
Transfer the Variance to Another Item
This option essentially resolves processing issues. For example, when doing the return, the user captured the wrong item or marked it off against the wrong item. What they will find is that Item A has a variance with some equipment outstanding, and Item B has equipment that has been over returned, purely because of the data entry error. What they can do is transfer the items from one piece of equipment through to the other to balance the items off.
Close and Accept the Variance
The user can also choose to close the variance which is very similar to writing off the variance. The company is absorbing the cost and accepting the variance, and the system is balancing off the transactions in the different warehouses to ensure that everything balances off.
Transfer the Variance to Another Job
The last option is transferring the variance to another Subjob to resolve data capture issues. When the user is doing the transfer to other Subjobs, the system is not doing anything in terms of the processing because everything has been returned to the company.
The user can do multiple processes against one variance. If we come back to our example, a company dispatches 10 items, 8 items have been returned, and 2 items are outstanding. In that process the company can write-off one of those items and they can invoice out the balance.
Variance processing is generally meant to be an end of Job process. The user can use the Job Status to control which Jobs can be included in the variance processing.
Article is closed for comments.