Wrong Purchase price variance


I have one Item and its cost is rupees 142.69 and I am following Standard Cost method. When I create a PO for the same Item at rupees 140.00 and receive (posting picking slip) AX is creating the following entry with a warning. The GL distribution as follows:

Debit – Inventory Clearing Account 142.69

Debit – Purchase Price Variance 45.12

Credit – Purchase Price Variance 47.81

Credit – Sundry Creditors Clearing Account 140.00

The variance calculation is wrong but “Purchase Price Variance” account balance is correct i.e. 47.81 minus 45.12 equal to 2.69. Instead of this entry it should hit the “Purchase Price Variance” account directly 2.69

Any idea why ?

Thanks in Advance.

Hi TamilSelvi,

It can be explained if you would have setup miscellaneous charges which are set to have the cost posted on item level. Can you verify this?