It is the net balance in WIP for each work order - total cost into the work order minus finished production and WIP Variance coming out.  For Closed Work Orders, it should be 0.

What method of inventory are you using?  Average or FIFO?  We use FIFO, and when the last entry is made to finished production for the work  order, it is very important to answer "Y" to the DBA prompt "Is this the final entry to finished goods?"  Because it is at this point that DBA no longer uses standard cost for valuing these items, but recalculates the value of these items to be the difference between Total Actual Cost in the work order and previous entries made at standard cost to date.  This ensures that WIP variance is minimal, $0 or sometimes a penny or two when the work order is closed .  Hope this helps.

1) We are on average cost method
2) We always answer yes to rebuild summarized costs
3) Only the Work orders with -0- in inventory are the ones that the amounts don't close properly.
4) We are not talking pennies here.  Each month I have a few thousand dollars to adjust because of this problem.
5) The WIP variance posting just does not happen when closing a work order that has no inventory to post against.