Another type of expected cost that can be revalued is WIP inventory, within certain rules. For more information,
see the “WIP Inventory Revaluation” section in this topic.
When calculating the revaluable quantity for items using the Standard costing method, item ledger entries that have not
been completely invoiced are included in the calculation. These entries are then revalued when you post the revaluation.
When you invoice the revalued entry, the following value entries are created:
The usual invoiced value entry with an entry type of Direct Cost. The cost amount on this entry is the direct cost
from the source line.
A value entry with an entry type of Variance. This entry records the difference between the invoiced cost and the
revalued standard cost.
A value entry with an entry type of Revaluation. This entry records the reversal of the revaluation of the expected
cost.