Purchase Price Variances
The purpose of this model is to analyze the variances in purchase prices when making these main comparisons:
- Monitor purchase order variances measured as the variance between standard costs and the cost-values of the purchase order when goods are being received
- Monitor purchase invoice variances measured as the variance between costs captured at goods receipt and the invoice costs
The solution provides analysis from various dimensions, such as suppliers, buyers, material, and calendar. The facts in this model can be analyzed by the accounting date.
Source information
Purchase Price Variances combines two sources of data:
- Standard costs and purchase order costs reported at goods receipt against a purchase order (Internal accounting transactions in CINACC) and Goods receipt - Line FGRECL for the supplier and buyer dimensions
- Invoiced costs compared to costs reported at goods receipt reported at purchase order invoice (MPLINE) matching Invoice line accounting entries (FGINAE)
For Purchase Invoice Price Variances, only accounting transactions with status 4 are used. The model only covers accounting entries without any error codes.