E9: Purchase Price Variance

Yahoo Archive
1
Thanks for the questions Cathy.

The issue is mainly around the unit of measure. We measure the product in linear feet and they measure it in square meters.
There is an inherent likely hood that there will be a discrepancy but if it is with reason then we just take it. The amount of effort to resolve to the penny is just too much. Now if the discrepancy is not within reason, then we dispute it just as you described.

What we are trying to do is eliminate the work we do now in those “within reason” cases and just have the variance hit AP variance and be done with it.

I was doing more testing and it looks like you have to disperse the variance in AP invoice entry. This is what will cause an entry to the AP invoice account.
I’m thinking of creating a customization to automate this dispersement.






Joe Rojas | Director of Information Technology | Mats Inc
dir: 781-573-0291 | cell: 781-408-9278 | fax: 781-232-5191

addr: 37 Shuman Ave | Stoughton | Ma | 02072-3734
jrojas@... | www.matsinc.com
Ask us about our clean, green and beautiful matting and flooring

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This message is intended only for the individual named. If you are not the named addressee you should not disseminate, distribute or copy this e-mail. Please notify the sender immediately by e-mail if you have received this e-mail by mistake. Please note that any views or opinions presented in this email are solely those of the author and do not necessarily represent those of the company.


From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Friday, August 01, 2014 4:50 PM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] E9: Purchase Price Variance


Question ?

Even if they ship you more or less – isn’t the unit cost the same?

The AP variance account will calculate the difference between the PO price and the AP price. I

Why don’t you show what you actually receive? And pay for that –

If they ship you less – pay for the amount you receive. Contact the supplier and let them know the problem. You might have to close the PO line / release short or let the vendor know you are expecting the balance.

If you receive more – you should still receive the actual quantity. At this point you have some decisions to make on whether you notify the supplier or change the unit cost on your invoice to total the Supplier’s Invoice.

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Friday, August 01, 2014 1:39 PM
To: vantage@yahoogroups.com
Subject: [Vantage] E9: Purchase Price Variance



Hello,

We have a scenario where we order X amount from a vendor on our PO. They will claim that they ship X amount and invoice for X amount but in reality, we receive an amount different than X. The amount received could be for more or less.
Having the inventory correct is very important so we receive in the actual amount.

Right now, we’ve been going back and adjusting the unit cost on the PO before receiving so, that in the end, the receipt cost will match the invoice cost and there will be no variance.

We’d like to stop doing this and just record the PPV.
I was testing this out in our test environment but it seems that I cannot post an AP invoice that has a variance. This seems odd because isn’t that what the AP variance account is for? Am I missing something? Is there some place to block a variance that I need to modify?

Thanks all in advance!




Joe Rojas | Director of Information Technology | Mats Inc
dir: 781-573-0291 | cell: 781-408-9278 | fax: 781-232-5191

addr: 37 Shuman Ave | Stoughton | Ma | 02072-3734
jrojas@...<mailto:jrojas@...> | www.matsinc.com<http://www.matsinc.com>
Ask us about our clean, green and beautiful matting and flooring

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This message is intended only for the individual named. If you are not the named addressee you should not disseminate, distribute or copy this e-mail. Please notify the sender immediately by e-mail if you have received this e-mail by mistake. Please note that any views or opinions presented in this email are solely those of the author and do not necessarily represent those of the company.



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2
Hello,

We have a scenario where we order X amount from a vendor on our PO. They will claim that they ship X amount and invoice for X amount but in reality, we receive an amount different than X. The amount received could be for more or less.
Having the inventory correct is very important so we receive in the actual amount.

Right now, we’ve been going back and adjusting the unit cost on the PO before receiving so, that in the end, the receipt cost will match the invoice cost and there will be no variance.

We’d like to stop doing this and just record the PPV.
I was testing this out in our test environment but it seems that I cannot post an AP invoice that has a variance. This seems odd because isn’t that what the AP variance account is for? Am I missing something? Is there some place to block a variance that I need to modify?

Thanks all in advance!




Joe Rojas | Director of Information Technology | Mats Inc
dir: 781-573-0291 | cell: 781-408-9278 | fax: 781-232-5191

addr: 37 Shuman Ave | Stoughton | Ma | 02072-3734
jrojas@... | www.matsinc.com
Ask us about our clean, green and beautiful matting and flooring

[cid:37ce8d.png@2eca9cf0.4abef292]
This message is intended only for the individual named. If you are not the named addressee you should not disseminate, distribute or copy this e-mail. Please notify the sender immediately by e-mail if you have received this e-mail by mistake. Please note that any views or opinions presented in this email are solely those of the author and do not necessarily represent those of the company.




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3

Question ?

 

Even if they ship you more or less – isn’t the unit cost the same?

 

The AP variance account will calculate the difference between the PO price and the AP price.   I

 

Why don’t you show what you actually receive?  And pay for that –

 

If they ship you less – pay for the amount you receive. Contact the supplier and let them know the problem. You might have to close the PO line / release short or let the vendor know you are expecting the balance.

 

If you receive more –   you should still receive the actual quantity.   At this point you have some decisions to make on whether you notify the supplier or change the unit cost on your invoice to total the Supplier’s Invoice.

 

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Friday, August 01, 2014 1:39 PM
To: vantage@yahoogroups.com
Subject: [Vantage] E9: Purchase Price Variance

 

 

Hello,

We have a scenario where we order X amount from a vendor on our PO. They will claim that they ship X amount and invoice for X amount but in reality, we receive an amount different than X. The amount received could be for more or less.
Having the inventory correct is very important so we receive in the actual amount.

Right now, we’ve been going back and adjusting the unit cost on the PO before receiving so, that in the end, the receipt cost will match the invoice cost and there will be no variance.

We’d like to stop doing this and just record the PPV.
I was testing this out in our test environment but it seems that I cannot post an AP invoice that has a variance. This seems odd because isn’t that what the AP variance account is for? Am I missing something? Is there some place to block a variance that I need to modify?

Thanks all in advance!




Joe Rojas | Director of Information Technology | Mats Inc
dir: 781-573-0291 | cell: 781-408-9278 | fax: 781-232-5191

addr: 37 Shuman Ave | Stoughton | Ma | 02072-3734
jrojas@... | www.matsinc.com
Ask us about our clean, green and beautiful matting and flooring

[cid:37ce8d.png@2eca9cf0.4abef292]
This message is intended only for the individual named. If you are not the named addressee you should not disseminate, distribute or copy this e-mail. Please notify the sender immediately by e-mail if you have received this e-mail by mistake. Please note that any views or opinions presented in this email are solely those of the author and do not necessarily represent those of the company.



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