Price variance on PO

[massimiliano_riva]

Hi guys my problem is this:

my customer have received a standard workflow e-mail in which the system alert for difference price but:

- In PO the price is 20,33 EUR e PO qty 250 so amount 5.082,50 EUR

-there is a Good Receipt for 260 qty

-The amount entered on Invoice is 5.285,80(for 260 qty)

-the tolerance in customizing are both upper and lower of 5% and 195 EUR absolute

-the price is standard

The difference between PO amount and Invoice amount is in the range of tolerance..in your opinion because the system alert about a price difference?

thanks in advance

Bye

[Former Member · Accepted solution]

Hello,

In your case the Price for each qty = 20.33EUR

Total qty in PO = 250

Estimated Price= 5082.50EUR

You have done GR for 260 with price of 5285.80EUR

Invoice generated for 260qty with price of 5285.80EUR

For all the Purchase Orders we usually setup a Tolerance key like "PE, BD, PP" etc..

So do check if all the tolerance keys are checked (or) what all tolerance keys that are been used by your client.

Check also the underdelivery and overdelivery tolerances in Material master for that particular material.

usually at cleint level overdelivery tolerance is used.

Hope this will give you some idea.

[Former Member]

--> If the material cost and the PO cost differs, then it will post the difference to the Price difference account.

--> It looks like the absolute upper limit has been exceeded by 8.3.

20.33 250 5082.5

20.33 260 5285.8

5% - 5336.625 (within the tolerance)

Abs(195) - 203.3 (exceeded by 8.3)

Price - Standard.

As you are using the standard price, any difference will post against the price difference account.