Price Variance Postings

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