An invoice is said to contain variances if a quantity or value in at least one item is invoiced at a different value to the value that the system proposes.
Use
If you accept a variance in an invoice item and overwrite the proposed value, the system checks if the variance is within the tolerance limits defined in Customizing. If it is outside the limits, a warning message is displayed but you can still post the invoice. If an upper tolerance limit is exceeded, the invoice is posted but blocked for payment. You have to release the invoice for payment in a separate step.
Structure
There are four different types of variance:
Quantity Variance
The quantity in the invoice is not the same as the difference between the quantity delivered and the quantity invoiced so far.
Ordered:
100 pieces at $10/pc.
Delivered:
50 pieces
Invoiced so far:
0 pieces
Invoice:
80 pieces at $10/pc. = $800
Price Variance
The price in the invoice differs from the price in the purchase order.
Ordered:
100 pieces at $1.30/pc.
Delivered:
100 pieces
Invoiced so far:
0 pieces
Invoice:
100 pieces at $1.24/pc. = $124
Quantity and Price Variance
Here we have a variance in both quantity and price.
Ordered:
100 pieces at $10/pc.
Delivered:
60 pieces
Invoiced so far:
0 pieces
Invoice:
100 pieces at $11/pc. = $1100
Order Price Quantity Variance
If the price in the purchase order refers to a unit of measure different to the order quantity, this quantity is referred to as the order price quantity (for example, you order in pieces but are invoiced in $/kg). As a check, the system works out the ratio between the quantities in order price units and in order units. If this ratio in the invoice is different from the ratio at goods receipt, a variance in order price quantity exists. If the invoice is received before the goods, the ratio in the invoice is compared with that in the purchase order.
Ordered:
100 pieces (= 250 kg) at $20/kg
Delivered:
100 pieces (= 240 kg)
Invoiced so far:
0 pieces
Invoice:
100 pieces (= 260 kg) at $52/kg = $5200
Thus, the ratio of order price quantity to order quantity is:
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