cancel
Showing results for 
Search instead for 
Did you mean: 

Invoice Variance Calculation

former_member862468
Participant
0 Kudos

In P2P process, I am trying to understand how the Invoice Variance is calculated.

For ex, I have PO worth $1000, I did a GR worth 1200, this 200 will go to PPV account but if i receive the invoice for 1500, will the system compare it with po amount of 1000 and post this $500 or will it compare with GR and post the $300 variance to IPV account. We have "GR based IV" checked in PO.

Thanks

Shriya

Accepted Solutions (1)

Accepted Solutions (1)

ajaycwa1981
Active Contributor
0 Kudos

Hi Shriya

PPV can arise at 2 Points and in 2 scenarios

Price Control of the Material is S


At GR: If the PO Price is different than Std Price

At IR: If the Invoice Value is different than PO Price

Price Control is V

At GR: There can never be Price difference

At IR: If the Invoice Value is different than PO Price and you don't have enough stock coverage i.e. the Stock purchased in Consumed. Only in this case, you have PPV.. If the Stock is not consumed, PPV is not posted, but it is charged to inventory

Regards

Ajay M

Answers (2)

Answers (2)

former_member862468
Participant
0 Kudos

Thank you Ali and Ajay. Appreciate your help.

former_member198650
Active Contributor
0 Kudos

Hi Shriya,

If your PO value is 1000, then GR will also post with 1000. Unless you change the PO value as 1200,the GR wont post with 1200. If you change the PO as 1200 and the material price indicator as 'v', in that case it will post as 1200 to inventory a/c. If the price indicator as 'S', in that case the inventory got posted with 1000 and remaining 200 posted in PPV account.

At invoice posting, the system will derive the PO value from the PO rate * GR qty, if you change the PO rate as 1500 and GR posted with 1000, in that case 500 will got posted to inventory/PPV a/c, if the price indicator as V. Else it posts to PPV.

However, if the PO rate as 1500 and GR posted with 1200, in that case 300 will go to inventory/PPV a/c.

Regards,

Mukthar