Price variance in accounting distribution (PO Invoice)

Hi All,

Do anyone know why there is price variance in the accounting distribution when posting the PO invoice?

This happened for partial invoice. So when we try to post the second invoice for the PO, we there will be price variance with the same amount as first invoice.

Example :

The quantity in the PO line : 100 unit

Unit price : USD 3.00

Invoice 1 :

Quantity : 25 Unit

Net amount : 25 * 3 = USD 75

Invoice 2 :

Quantity : 75 Unit

Net amount : 75 * 3 = USD 225

But in the accounting distribution for the invoice 2, there is price variance with amount USD 75.

Accounting distribution for the second invoice :

Net amount : 225.00 USD

Extended price : 300.00 USD

Price variance : -75.00 USD

Hopefully anyone could help me with this issue. Thanks.



Hi Jimmi, it is a bit late but here you can find the solution of the problem:…/Purchase-price-variance-in-accounting-distribution-service-invoice.aspx