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Total Value Difference (Out - In) - Stock Entry transaction for production Order


I’m new to manufacturing/ costing area. Can someone pls explain the below scenario.

I’ve a production order, which generates 2 stock entry transactions.

  1. Material Transfer for Manufacture
  2. Manufacture

In the manufacture transactions there’s a difference between Total Incoming Value & Total Outgoing Value. That’s creating a Total Value Difference (Out - In).

My query is, in which scenario, this difference occurs. And what should be the accounting for the same?

Uploaded the screenshot for reference.




Incoming Value- Goods value which you are providing for production .
Outgoing value- Finish product value after production.
Difference- Additional cost of production process which can be operation cost, electricity, Worker cost etc.