What can vary ?
- The supplier does not have the stock now = sends it later with another purchase order to you
- The price on the supplier invoice is not the same as the purchase order and this is not discovered until after the stock has been received
For landed cost variations to expected landed cost prices - see Landed Costing
Stock does not arrive
If a stock item does not arrive on a purchase order - count the received qty as zero = the purchase order will then be processed normally.
The invoice will match up with the shipment
More stock arrives than expected
Count the stock that arrived - the counted will be greater than the ordered qty.
The system will prompt if the invoice includes the additional stock - or if it was sent as free stock
Unexpected Stock items arrive
Perhaps they were ordered on a previous purchase order that was short shipped.
Use the "Add Item" button on the stock receipt to enter the new item and qty, it will have a zero ordered qty - the invoice will be created for the counted quantity.
You will be prompted to make a choice about the "More Stock Arrived than Expected" as above.
The invoice is a different price each to the purchase order after stock has been counted and received
The invoice price variance will be allocated by the system to a control account "Purchase Price Variance" and the stock will NOT be revalued.
Example PO
Here is a PO with all of the above issues.
Stock count differences
Price Differences
After all changes - user will be prompted - what to do when counted different to invoiced
Price Variance Journals will be created the Creditor Invoice is created
Uses the Purchase Price Variance GL Control Account
Can view all that has happened on the Purchase Order
All linked Journals can be found from the Purchase Order
