Interested to Buy Any Domain ? << Click Here >> for more details...
difference between purchase price variance and invoice price
variance???
- 3 Answers
- 12484 Views
- I also Faced
- E-Mail Answers
Answer Posted / ajay
In general, Inventory records purchase price variance (PPV) and recognizes cycle count and physical inventory adjustments as variances.
Purchase Price Variance (PPV)
During a purchase order receipt, Inventory calculates purchase price variance. In general, this is the difference between what you pay the supplier and the item's standard cost. Inventory calculates this value as follows:
Inventory updates the purchase price variance account with the PPV value. If the purchase order price is in a foreign currency, Inventory converts it into the functional currency of the inventory organization and calculates the purchase price variance. Purchasing reports PPV using the Purchase Price Variance Report. You distribute this variance to the general ledger when you perform the general ledger transfer, or period close.
Invoice Price Variance (IPV)
In general, invoice price variance is the difference between the purchase price and the invoice price paid for a purchase order receipt. Purchasing reports invoice variance. Upon invoice approval, Payables automatically records Invoice Price Variance, to both invoice price variance and exchange rate variance accounts.
Cycle Count and Physical Inventory
Inventory considers cycle count and physical inventory adjustments as variance.
You distribute these variances to the general ledger when you perform the general ledger transfer or period close.
| Is This Answer Correct ? | 0 Yes | 0 No |
Post New Answer View All Answers
Tell me is there a way to update schedule ship date for all lines of so in one go?
Explain difference between discrete mfg and process manufacturing?
Where to find the ISO accounting entry details?
Navigation to change the serial numbers from Shipping Transaction form.
What is the use of LC? How is it useful in export sales?
Hi Guys, I am looking for Oracle Apps SCM/Finance Functional Training in Bangalore. Please suggest me or Guide me
In India Localization how are generating Excise and VAT Invoice number both shippable and non-shippable Sales Orders/Transactions.
can u send me the supporting issues in oracle apps scm functional such as inventory,purchasing and order management
What are the different types of excise exemptions?
What is the use of LC? How is it useful in export sales?
What are the FAQ's asked Functional consultants in SCM ? If any one knows please send.
Do you have knowledge of Inter-Company Invoicing? If yes, explain the process.
What is the difference between replenishment counting and kanban?
In order management, how to reserve an item without booking?
What are the different types of excise exemptions?
