Anyone here knows why does NetSuite split up the cost of Production Variance in Quantity and the Price Account. we used more quantity then what BOM called for but we didn't touch the pricing on the item, but on the G/L impact it split between Quantity and the price. The G/L Impact is correct but why did it split into two accounts.

Doesn't that make sense? You planned for 100, you used 110. You had a variance of 10.

yes, there is variance, but that is quantity variance right? if I Received something in at $7 instead of $5 then that would be the price variance.

Average cost or standard cost?

standard cost

So, if you're using standard cost, and the item is expected to cost $10 bucks. Because you use two of the $5 items. Then you issue 3 of those $5 items to it. It seems like the item you created would have a price variance of $5. Since you expected it to cost $10, but it actually cost $15. I'm not 100% sure what you're seeing, but standard cost might account for it. I'm on average cost, so I'm not as familiar with the GL of standard.

hmm not sure if the BOM items had a different price, the only thing they told me was the Quantity was over issued so on the work order it should go to Quantity variance and not price variance, but yes, I think you are right, if the Price of the BOM item was different then Standard then it would cause price variance.