Price Variance Postings
Overview |
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Purchase Orders are input on to the system with different products, and product costs. Sometimes the cost specified on the order, is actually different to the value invoiced by the Supplier. In this instance, in the ‘Purchase Order’ window under the ‘Invoicing’ tab, the ‘Inv Value’ entered by the user would be different to the original expected cost input under the ‘Purchase Order Details’ tab. Please see section above which explains when a Purchase Order Invoice is posted to |
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the finance system which is also when a PO Price Variance posting is sent to |
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finance system. |
Purchase Order Price Variance |
Please see the table below for the debit/credit details posted to |
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the finance system for this posting type. |
Posting Type | JD (Journal Debit) | JC (Journal Credit) |
1. PRODUCT COST (VARIANCE) |
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 Purchase Invoice (Invoice Value > Order Value) | GRN Price Variance | Goods Received (GRN) Accrual |
 Purchase Invoice (Invoice Value < Order Value) | Goods Received (GRN) Accrual | GRN Price |
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Variance |
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When an EP Sales Order is created, and an EP Invoice is raised, the same procedure applies as for a normal Stock Sales Order Invoice. However the next time a Stock Movement Posting is made, an accrual is also made as follows:
Posting Type | JD (Journal Debit) | JC (Journal Credit) |
1. PRODUCT COST |  |  |
 EP Sales Order Invoice | Cost of Sales | EP Cost of Sales Accruals |
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When the EP Purchase Order is receipted and the Purchase Invoice raised, stock is allowed to be allocated against the EP Sales Orders. When these EP Sales Orders are confirmed delivered, if the product cost is more/less than accrued then a price variance is posted to Sage to compensate for this.
Posting Type
JD (Journal Debit)
JC (Journal Credit)
1. PRODUCT COST (VARIANCE)
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 EP Sales Order Despatch (Product Cost > Accrual)
Cost of Sales
EP Cost of Sales Accruals
 EP Sales Order Despatch (Product Cost < Accrual)
EP Cost of Sales Accruals
Cost of Sales
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