What is an implication of creating a variance journal entry?

Creating a variance journal entry has significant implications for transaction integrity within the financial system. When a variance journal entry is posted, it locks in the associated purchase orders (POs) and vendor bills related to the variances. This means that after the variance entry is recorded, those transactions cannot be altered or changed. This is crucial in maintaining accurate financial records and ensuring that the variances are properly accounted for in the financial statements.

The locking mechanism enhances the reliability of financial reporting, as it prevents any unauthorized or accidental changes that could impact the reported results. By safeguarding the integrity of these financial transactions, organizations can ensure they maintain a clear, audit-ready trail that reflects the performance of their financial activities.

Thus, the correct choice highlights the essential function of variance journal entries in protecting the integrity of related financial documents, ensuring that once they are posted, the associated POs and vendor bills remain unchanged.