Example of price difference and additional costs

Your company needs to purchase some mouse pads for the computers it manufactures. You create a purchase order with the following details:

Order:
Quantity:10 mouse pads
Price per unit:USD 10
Order amount:USD 100

 

You receive the goods and the invoice from your business partner with the following details:.

Invoice:
Quantity:10 mouse pads
Price per unit:USD 11
Freight costs:USD 20
Total invoice amount:USD 130

 

There is a difference of USD 30 between the order amount and the invoice amount.

The price difference is the difference between 10 mouse pads costing USD 10 and 10 mouse pads costing USD 11. The total price difference for this invoice is USD 10.

The remaining difference is called additional costs. Additional costs can be different kinds of costs the business partner charges, such as freight costs, insurance costs and so on. The additional costs for this invoice is USD 20.