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 the finance system which is also when a PO Price Variance posting is sent to finance system. |
Purchase Order Price Variance |
Please see the table below for the debit/credit details posted to the finance system for this posting type. |
Posting Type | JD (Journal Debit) | JC (Journal Credit) |
1. PRODUCT COST (VARIANCE) | ||
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 Variance |
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