Purchase Price Variance (PPV)

Users are provided with the option to switch between two voucher modes:
- A/P Voucher Mode (Accounts Payable Voucher)
- PPV Mode (Purchase Price Variance)
After PPV voucher is posted, the items marked as PPV are considered as invoiced from RNI. When loading the RNI to A/P voucher, item list will not have items marked as PPV
When users load any open RNI to A/P voucher from Procurement ➜ AP Vouchers ➜ All RNI ➜ Load any one RNI to transaction list
The Details section of the voucher contains a flag to switch from the AP voucher mode to PPV mode (the default mode is AP voucher mode).
When the flag is enabled to the PPV mode, the Invoice number field in the Details section is optional.
When the flag is enabled to the PPV mode, the Item List section displays the following modifications and field information:
Item Name
- Inventory item name
- Read-only field
Supplier Item #
- Supp. item # for Inventory item
- Read-only field
PV OK? (Price Variance)
- Field Type: Check Box
- Default State: Unchecked
- If selected, then the inventory item received amount is added to the debit PPV total.
- If unchecked, then the inventory item received amount does not get added to the Debit PPV total.
PO REF Number
- PO number associated with RNI
- Optional to have reported here based on RNI association with PO
- Read-only field
Unit
- RNI Unit Code
- User can switch between 4 defined unit types of each item
Pack Size
- RNI Pack size (default)
- To be updated based on Unit selection from previous field
- Read-only field
Received Quantity
- RNI Received QTY
- Read-only field
Received Cost ($)
- RNI received unit cost in site currency
- Read-only field
Received Cost (SC)
- RNI received unit cost in supplier currency
- Read-only field
Received Amount ($)
- RNI received amount (QTY × Cost) in site currency
- Read-only field
Received Amount (SC)
- RNI received amount (QTY × Cost (SC)) in supplier currency
- Read-only field
Allocated Charges ($)
- allocated charges for inventory items from RNI in site currency
- Read-only field
Allocated Charges (SC)
- allocated charges for inventory items from RNI in supplier currency
- Read-only field
REF
- RNI Invoice Number
- Read-only field
Remarks
- Voucher line-item remarks
Tax 1
- Inventory item type Tax 1 name
- Read-only field
Tax 2
- Inventory item type Tax 2 name
- Read-only field
Tax Amount 1 ($)
- Inventory item tax 1 amount in site currency
- Read-only field
Tax Amount 1 (SC)
- Inventory item tax 1 amount in supplier currency
- Read-only field
Tax Amount 2 ($)
- Inventory item tax 2 amount in site currency
- Read-only field
Tax Amount 2 (SC)
- Inventory item tax 2 amount in supplier currency
- Read-only field
Tax Rate 1 (%)
- Inventory item tax 1 rate (%) in site currency
- Read-only field
Tax Rate 2 (%)
- Inventory item tax 1 rate (%) in supplier currency
- Read-only field
Users must click on Post to see the summary of items charged to PPV
- Invoice Number
- PO Number
- Post Date
- Item Total (Site currency)
  - Item total including all items values in site currency
- Debit PPV (Site currency)
  - PPV marked items valued in site currency
- Tax 1 ($., site currency)
- Tax 2 ($., site currency)
- Item Total (supplier currency)
  - Item total including all items values in supplier currency
Debit PPV (Supplier currency)
- PPV marked items valued in supplier currency

Tax 1 (SC)
Tax 2 (SC)
When the Tax on receiving system preference is set to Add to item total, then following fields are displayed and the tax totals of items marked for PPV gets added to the PPV total, otherwise no tax totals are included to the PPV.

Users can Confirm and Cancel operation, once confirmed, PPV voucher can be posted.
- User cannot post PPV voucher when no items are selected for PPV (zero items marked for PPV). Users are prompted with warning popup message: No items selected for Price Variance. Please check and try again.
After PPV voucher is posted, the items marked as PPV are considered as invoiced from RNI posted. When loading the RNI to A/P voucher, item list will not have items marked as PPV.
Users cannot perform the following actions for a PPV invoice:
- Add or remove item from list
- Add Allocation charges to items
- Add misc. charges to invoice
Users can perform the following actions for a PPV invoice:
- Attach files to PPV invoice
Inventory Activity:
- No inventory activity (no QOH increase, no QOH decrease at posted locations)
GL Activity:
- DEBIT - Item Total from chart of account mapped to Misc. Accounting ➜ RNI Account
- CREDIT - Item Total to chart of account mapped to Misc. Accounting ➜ PPV Account
Reports: (Refer attachments for report requirements)
- VPIFRM - print form for PPV
- RECVR03 - reports from Inventory ➜ Purchases
- RECVR04 - reports from Inventory ➜ Purchases
Integrations:
- No option is provided in integration workflows to select PPV mode for processing AP Invoices
- Default mode for importing AP invoices will be Voucher Mode only.
Landing Screen to show the list of PPV Invoices - users can access this from Procurement ➜ AP Vouchers ➜ All PPV. The following line items are displayed:
- Supplier
- Invoice Number
- Post Date
- Invoice Date
- Location
- PPV Total ($., in site currency)
- PO Number (PO Number with revision)
- Entered On
- Entered By
Filters to be provided,
- Supplier
- Post Date
- Location
- Entered On
- Entered By
Each Line of PPV invoices is provided with ACTION to PRINT - PPV invoice form (VPIFRM)
Each link of PPV invoice is provided with an option to view details of invoice

Scenario 1

If changes to the item result in an increase of voucher total compared to RNI total, then, the difference can be recorded against the Debit from PPV field. The value gets debited from PPV account and the same gets listed in the GL.

In A/P Supplier total Summary,
- Debit RNI = Sum of (Invoice QTY × Rcvd Cost/UN) + Allocate charges + Tax 1 Amount (if available) + Tax 2 Amount (if available)
  - Tax 1 amount = (Tax 1 percent / 100) * (Invoice QTY × Rcvd Cost/UN)
  - Tax 2 amount = (Tax 2 percent / 100) * (Invoice QTY × Rcvd Cost/UN)
- Debit Misc. = Sum of Misc. Charges (if available)
- Credit AP = Sum of (Invoice QTY X Inv. Cost/UN) + Allocate charges + Tax 1 Amount (if available) + Tax 2 Amount (if available)
  - Tax 1 amount = (Tax 1 percent / 100) * (Invoice QTY × Inv. Cost/UN)
  - Tax 2 amount = (Tax 2 percent / 100) * (Invoice QTY × Inv. Cost/UN)
- Debit PPV = Credit Ap - Debit RNI
In the above situation, the following are listed under the GL activity:
- DEBIT from RNI account [Value of Debit RNI]
- DEBIT from PPV account [Value of Debit PPV]
- DEBIT from Misc Account(s) [Value of each Misc Charges - if available]
- CREDIT to Accounts Payable (or) Supplier account. [Value of Credit AP]

Scenario 2

If changes to the item result in a decrease of voucher total compared to RNI total, then, the difference can be recorded against the Debit from PPV field, but now in negative value. The value gets debited from the PPV account, but now in negative value and the same gets listed in the GL.

In A/P Supplier total Summary,
- Debit RNI = Sum of (Invoice QTY × Rcvd Cost/UN) + Allocate charges + Tax 1 Amount (if available) + Tax 2 Amount (if available)
  - Tax 1 amount = (Tax 1 percent / 100) * (Invoice QTY × Rcvd Cost/UN)
  - Tax 2 amount = (Tax 2 percent / 100) * (Invoice QTY × Rcvd Cost/UN)
- Debit Misc. = Sum of Misc. Charges (if available)
- Credit AP = Sum of (Invoice QTY X Inv. Cost/UN) + Allocate charges + Tax 1 Amount (if available) + Tax 2 Amount (if available)
  - Tax 1 amount = (Tax 1 percent / 100) * (Invoice QTY × Inv. Cost/UN)
  - Tax 2 amount = (Tax 2 percent / 100) * (Invoice QTY × Inv. Cost/UN)
- Debit PPV = Credit Ap - Debit RNI
In the above situation, GL activity lists the following:
- DEBIT from RNI account (Value of Debit RNI)
- DEBIT from PPV account (Value of Debit PPV)
- DEBIT from Misc Account(s) (Value of each Misc Charges - if available)
- CREDIT to Accounts Payable (or) Supplier account (Value of Credit AP)