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.
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.