> For the complete documentation index, see [llms.txt](https://docs.tradeqloud.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.tradeqloud.com/qloud-margin-control/using-qmc/setup-guides/sales-costs-setup/sales-cost-variance-handling.md).
# Sales Cost Variance Handling
Sales Cost can track and post variances. The system will automatically create a journal entry to correct any variances if this setting is enabled
The default method is defined on the TradeQloud Setup record, but can be modified on budget / transaction records.
For example a Sales Cost Purchase Order is created for €500 (1000 quantity @ 0,50)
The following accounts are defined on the SC - Private Labelling Item:
If a Vendor Bill is then created from the Purchase Order for a rate of 0,75 (resulting in a €250 variance)
The application will then create a Journal to capture this variance in the general ledger
