Purchase Price Variance

This covers situations where the Purchase Order has been receipted and at some later time, the Invoice is matched against the Receipt and where the Invoice contains a different price to the receipt price. This difference is posted to a Purchase Price Variance Cost centre.

 

Debit

Credit

 

(For Inventory)  PURCHASE PRICE VARANCE

 

(For Descriptors) Cost Centre

 

(For Catalogue Items) Cost Centre

 

(For Direct Job Allocations) JOB WORK IN PROGRESS


(For Direct Assembly Allocations)  PURCHASE PRICE VARANCE

 

 

 

PURCHASES RECEIVED NOT INVOICED

 



Inventory:


The Cost Centre Mapping By Site is evaluated to determine the Cost Centre for Purchase Price Variance based on the site of the Job Order. If no Site Cost Centre Mapping rule exists,


then the Base Cost Centre Mapping is evaluated to determine the Cost Centre for the Purchase Price Variance



Descriptors:


The Descriptors Expense Cost Centre is evaluated first to determine the Descriptor Cost Centre. If no Cost Centre exists on the Descriptor itself,


then the Cost Centre Mapping By Site is evaluated to determine the Cost Centre for Descriptor Expenses based on the site of the Purchase Receipt. If no Site Cost Centre Mapping rule exists,


then the Base Cost Centre Mapping is evaluated to determine the Cost Centre for the Descriptor Expenses.


Catalogue Codes:


The Catalogue Expenses Cost Centre on the Supplier Catalogue is evaluated first to determine the Catalogue Cost Centre. If no Cost Centre exists on the Catalogue itself,


then the Cost Centre Mapping By Site is evaluated to determine the Cost Centre for Catalogue Expenses based on the site of the Purchase Receipt. If no Site Cost Centre Mapping rule exists,


then the Base Cost Centre Mapping is evaluated to determine the Cost Centre for the Catalogue Expenses.



Job Work In Progress (Direct Allocations):


The Cost Centre Mapping By Site is evaluated to determine the Cost Centre for Job Work In Progress based on the site of the Job Order. If no Site Cost Centre Mapping rule exists,


then the Base Cost Centre Mapping is evaluated to determine the Cost Centre for the Job Work In Progress



Assembly (Direct Allocations):


The Cost Centre Mapping By Site is evaluated to determine the Cost Centre for Purchase Price Variance based on the site of the Job Order. If no Site Cost Centre Mapping rule exists,


then the Base Cost Centre Mapping is evaluated to determine the Cost Centre for the Purchase Price Variance




Purchases Received Not Invoiced:


The Cost Centre Mapping By Site is evaluated to determine the Cost Centre for Purchases Received Not Invoiced based on the site of the Purchase Receipt. If no Site Cost Centre Mapping rule exists,


then the Base Cost Centre Mapping is evaluated to determine the Cost Centre for the Purchases Received Not Invoiced