Purchase variance

[luckykiriti]

Hello Gurus,

Can anyone please explain me how PO variance works and the minimum setting that we need to do.

How the variance will be shown if there is any quantity/price variance while doing 2way/3way/4way matching.
Does system generates any JEs for price variance? If yes what are they.

Thanks in advance for your help.

Best regards,
Kiriti V[:)]

[byswamy]

HI,

Purchase price variance: when the item standard cost and when you raising Po for same item cost will diffenrent then PPV will enter into picture..(i am not sure where it effects), account default from Inv org

Purchase rate variance: raise PO in foriegn currency exhange rate 40/- per dollar, when you match the PO to Invoice then exchange rate will be different, different amount will go in PRV. Accounts default from Financial option

Invoice Price Variance : when Po item cost and invoice cost will be different the difference amount goes into IPV. account default from Inv org

i hope you clear


Thanks
Swamy