Understanding the behavior of variance settlement cost

Dear All,

While calculating the variance it has two nature:

1. When target cost is less then Actual cost on order variance is Positive and settlement entry is:

Price diff a/c Dr

To change in stock

2. When target cost is more then Actual cost on order variance is Negative and settlement entry is:

Change in stock a/c DR

To Price difference a/c

I my case variance settle to FI only and I need to understand  the impact of settlement entry in FI. How to do this please guide.

Regards

Nitu