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.