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Former Member
Sep 26, 2010 at 05:46 PM

doubt in defination in LIV

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I am not able to understand the meaning of following statement:

invoice items with a small amount result in a relatively large quantity variance, and that invoice items with a large amount result in a small variance.

this line is from Quantity Variance

Quantity variance: For a purchase order, the open quantity to invoice is a result of the delivered quantity and the quantity already invoiced. There is a quantity variance if the invoice quantity does not match this open quantity. At the absolute upper limit, the quantity variance is evaluated on the basis of the amount in the invoice item. This means that invoice items

with a small amount result in a relatively large quantity variance, and that invoice items with a large amount result in a small variance. You can also define percentage limits for the quantity variance check, for which the system does not take account of the purchase order price.

please help