Enhanced interface

Purchase price variance report

This report is for companies who track the standard cost of items. The Purchase Price Variance or Invoice Price Variance report shows the variance between the purchase price of items and the standard cost that you assigned to the items.

When you run the report, you can select to show either the:

Purchase price variance: The variance between the purchase price on the purchase order and the standard cost for each item.
Invoice price variance: The variance between the purchase price on the purchase order and the PO purchase invoice price for each item.

The report does not cause any variances to be posted. The variances are automatically posted for Purchasing transactions if Enable automatic price variance posting is enabled in the Configure Purchasing page, including selecting price variance GL accounts.

Who typically needs this report?

Controllers who need to monitor the variances between the standard cost and the purchase order cost so that they can later update the standard cost to reflect reality.

To access this report, go to Purchasing > All > Reports and select Purchase price variance.

Subscription	Purchasing
User type	Business Warehouse
Permissions	Purchase price variance or invoice price variance: Run

View a monthly report

On the report settings page, select View.
The report displays all results for the default reporting period.
To refine the report, select Customize, and follow the steps in Customize and run below.

Customize and run

Before running the report, you can select the time period and types of items to include as well as specify how you want the report to appear.

Select the reporting period from the dropdown menu, or enter the start and end dates you want the report to cover. If you do not specify a reporting period, the system generates a report for the current month to date.
- You can specify either the reporting period or the start and end dates, but not both.
Set the filters to get the specific data you want.
- Filters enable you to include or exclude specific types of data in the report, such as customer, item, UPC, value, or account. As a general rule, to get fewer and more precise results in your report, set more filters.
Format the report.
- Format options will vary from report to report. Generally, you can set the layout of the report and arrange how to group and display the data contained in the report.
Enter a title, subtitle, and footer text for your report.
To view, process, memorize, or export the report or add it to the dashboard, select one of the following:

To...	...select
View the report now, in your browser.	View
Display the report now, in printable PDF format.	Print
Generate the report and store it for later access. Reports can be either stored in My Stored Reports or delivered to a cloud storage location, such as Dropbox. Learn more about processing and storing reports.	Process & store
Add the report to your dashboard	Add to dashboard
Memorize (that is, save) the report so that later you can refer back to it or modify and re-run it.	Memorize
Export the report to a separate file that you can then distribute or save to your local drive. File formats to which you can export the report data vary among reports.	Export
Return to the main report page and refine the report further.	Customize

About this report

A positive variance means you are paying more than planned, and therefore, are less profitable. A negative variance means you are paying less than planned, and are more profitable. Assessing the variance enables you to address the cost of goods quickly.

This report is primarily for organizations that use the standard cost method for inventory items. The standard cost is a fixed amount that's assigned to an item-warehouse combination. The standard cost remains constant regardless of any fluctuations in the costs that might occur as a result of the supplier billing you a higher or lower amount. This report enables you to monitor the variances between the standard cost and the purchase order cost so that you can update your standard cost to reflect reality.

More specifically, the report shows the variance between the purchase price on the purchase order and the standard cost for all items you receive into inventory. It also shows the variance of outside purchases for work in process such as stockable kits. The purchase price variance is calculated as the quantity received multiplied by the difference between the purchase order price and the standard cost.

Standard costs for inventory items are assigned at the warehouse level in the item record. The standard cost for an item can differ between warehouses and the standard cost in a specific warehouse can differ for different date ranges. If the system doesn't find a standard cost for an item and warehouse combination, it uses the standard cost in the Purchasing section in the General Info tab unless you're in a multi-entity, shared environment enabled for multiple base currencies. In that case, a value of zero is used.

Example: Assume the standard cost for a particular item in a warehouse is £10. You receive one unit of the item from the supplier at £10. The system posts £10 to the GL. However, on the next shipment, the supplier charges £11. In this case, the system posts £10 to the GL and £1 to the variance account. At the end of the year, you can see the total variance and decide how to change the standard cost.

Time period

You can use one of the numerous pre-defined reporting periods available from the Reporting period and As of date fields, or create your own reporting period using the Start date and End date fields.

To set the time period:

In the Time period section, do one of the following:

Use the Reporting period dropdown list to select the reporting period. Either enter a date in the As of date field or use the calendar tool to select a date.
Enter a specific Start date, End date, or both. Alternatively, use the calendar tool to select the desired dates.

If you complete all the time period fields (that is, if you fill in the Reporting period, As of date, Start date, and End date fields), Sage Intacct generates your report based on the start and end dates. It ignores the As of date.

The following table describes the fields in the Time period section.

Field	Description
Reporting period	These periods are relative to the As of date. All periods begin on the first day of the period, such as the first day of the month, quarter, or year that you select.
As of date	The date that Intacct will use as a baseline for the reporting period you select. Defaults to today's date.
Start date	Leave the Start date blank to include all information from the earliest date of your Intacct data up to and including the end date.
End date	Leave the End date blank to include all information from the start date up to today.
Prompt on run	Select this checkbox to force Intacct to wait for you (or anyone using this report) to enter a location, department, and/or time period before it will run the report.

Report type

Select which variance to display:

Purchase price variance: The variance between the purchase price on the purchase order and the standard cost for each item
Invoice price variance: The variance between the purchase price on the purchase order and the PO purchase invoice price for each item

Report filters

Use the filters to focus the results of your report. In effect, filters enable you to isolate and assemble just the data you want. You can set any combination of filters.

To set the filters to fine-tune your report results:

You can track items either by Item ID or by UPC code. To track items by Item ID:

For the Report on option, select Item ID, and then use either the From item and To item dropdown lists or the Operator and Value fields to specify the items to include in your report.

The Operator and Value fields help you filter on specific items. For example, if you want a report on an item with the ID 879HGT453, but you remember only part of the ID, such as the HGT characters, you can select Contains from the Operator dropdown, and then enter HGT in the Value field, and select View. The system finds and displays all items where the Item ID contains the character string "HGT". If you select Includes or Excludes from the dropdown, the Value field can contain a list of values separated by commas.

To track items by UPC code:

Select UPC as the Report on option, and then use either the From UPC and To UPC dropdown lists or the Operator and Value fields to specify the items to include in your report.

To run this report for a single supplier:
1. Select the supplier from the From supplier dropdown.
2. Select the same supplier from the To supplier dropdown.
To run this report for a specific range of suppliers:
1. Select the supplier you want at the beginning of the range from the From supplier dropdown.
2. Select the supplier you want at the end of the range from the To supplier dropdown.
To run this report for all suppliers:

Leave both fields blank.

If you have a large number of suppliers, or if this report takes too long to process, use the From supplier and To supplier fields to run a series of smaller reports. For example, you can run 5 reports, one each for suppliers whose names begin with A-E, then F-J, K-O, P-T, and U-Z.
To run this report for one type of supplier, select the type from the Supplier type dropdown menu.

Location and department filters

To set location and department options:

To filter the report by geographic location, select the location from the Location dropdown list.
Enter or select a location to run this report at the top level. The system uses the location that you specify to determine the appropriate currency.
To filter the report by department, select the department from the Department dropdown list.
If you want the report to cover certain locations regardless of what you select in the Location dropdown list, use the Show for dropdown list to select the locations you want the report to cover:
1. All Locations: Include data for all locations regardless of the entity you're currently using.
2. This Location: Include data only for the entity that you're currently using.
3. Child Locations: Include data only for the locations that are child locations of your current entity. For example, if your current entity is California, and you have child locations for San Francisco and Los Angeles, use this option to have the report include data only for Los Angeles and California.

Filter options
Filter field	Descriptions
Location	Use to limit report results to a specific location.
Department	Use to limit report results to a specific department.
Prompt on run	Select this checkbox to force the system to wait for you (or anyone using this report) to enter a location or department before it runs the report.
Show for	Select to show different views of the data, based on the location or entity you choose: All locations: This option shows the data that's posted to the location or entity and its children. This location: This option shows only the data that's posted to the location or entity you select. The data posted to any child location is not shown. Child locations: This option shows only the data that's posted to the child locations of the location or entity that you select. Any data that's posted to the parent location or entity is not shown. Example: Suppose your location is United States > California > San Francisco. All locations would show transactions for United States, California, and San Francisco. This location would show transactions for United States. Child locations would show transactions for California and San Francisco only.

Formatting

Select how to format your report from the Report groupings dropdown list:

Item: group by item in ascending order
Supplier: group by supplier in ascending order
None: Don't group and produce a flat report

Titles and footer

Titles, subtitles, and footers apply only to the print versions of this report. Export to Excel or CSV, or select Print for a PDF version.