What cause Purchase Return Variance?

AI generated answer (using internal Slack threads):

Purchase Return Variance in NetSuite is typically caused when there is a difference between the standard cost of an item and the actual cost at the time of return. This can occur due to various reasons such as discounts on purchase, changes in market price, or any other factors that affect the cost of goods sold (COGS). In the context of the conversations provided, it seems that the Purchase Return Variance issue is arising due to the introduction of a buyback process where goods are purchased back from customers at a significantly reduced price. This is causing a discrepancy between the standard cost and the actual cost at the time of return, leading to a variance. One of the solutions suggested in the conversations is to switch these SKUs to FIFO (First In, First Out) method. However, this might not completely eliminate the variance as the cost of goods can still fluctuate. Another issue discussed in the conversations is related to the Return Merchandise Authorization (RMA) process where NetSuite is crediting the entire amount to the return variance account instead of the COGS account. This seems to be a configuration issue and was resolved by inactivating the variance account in the chart of accounts. ****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ******