2777283 - Purchase Price Variance Shows no Differences for a Purchase Order

You are expecting differences within a given purchase order and have executed the Purchase Price Variance report to check the differences, however all the quantities and amounts offset each other, showing no differences.

SAP Business ByDesign.

1. Go to Business Analytics work center.
2. Go to Design Report view.
3. Open the Purchase Price Variance report.
4. Enter the desired purchase order.
5. Execute the report.

Differences were expected, however no differences are shown.

When executing the G/L Accounts - Line Item report, you see a posting to differences account from the associated goods and services receipt, which is your expected differece to be shown in the Purchase Price Variance report.

The Purchase Price Variance report shows the variances between the purchase order price, invoice amount, and payment amount.

The difference you were expecting concerns an inventory/purchase valuation difference, which happens since the unit price in the purchase order line item differs from the inventory cost maintaining in the Valuation tab of the material master, for the valuation period of the posting date.

System behavior is as expected, since the presented difference would concern an inventory difference. The amount and quantity of the purchase order item is equal in the goods receipt, invoice receipt and corresponding payment. Therefore, no purchase price variance occurred.

Purchase price. Inventory Cost. Purchase order. Purchasing Price. , KBA , SRD-FIN-INV , Inventory , How To