Payables & Cash Management

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Topic

    Gopal Somani
    Invoice Price variance in Payables Invoice
    Topic posted August 20, 2019 by Gopal SomaniRed Ribbon: 250+ Points, tagged Financials, Payables, Subledger Accounting 
    23 Views, 1 Comment
    Title:
    Invoice Price variance in Payables Invoice
    Summary:
    Invoice Price variance in Payables Invoice
    Content:

    Hi Gurus,

    When there is difference in PO price and Invoice price, I can see that Invoice price variance is getting generated in Accounting entry of Payables Invoices. I would like to understand if this IPV impact the inventory valuation ? If it impacts the inventory valuation then what accounting entry get passed. 

    Does this IPV account gets reversed in any entry in costing ? Or this IPV accounts goes directly to Profit and Loss ?

    Please provide your valuable inputs.

    Thanks !

     

    Comment

     

    • Becky Alvarez

      I am not sure.  That is more of a question for how you have your Inventory setup.  You might want to either log an SR or reach out to the Supply Chain or Procurement Forums and see accounting for Inventory can be setup to handle this as I don't believe this would be setup in Financials.  Someone can correct me if I am wrong.