We had a PO that was received in the morning. On the same day, but in the afternoon, the cost on the item (but not the PO) was changed. We processed the invoice a few days later, and it exactly matched the PO at the old cost.
The receipt (and associated inventory movements that happen immediately) all occurred at the old cost, as we would want and expect.
Although the invoice matched the PO at the old cost, AS treated it at the new cost, and we got an invoice price variance entry (and a balance left over in our accrued AP account).
Does it make sense that the AP entry referenced the updated cost, even though that cost wasn't on the PO or the invoice? Does the fact that the receipt and price update occurred on the same day cause confusion? How do organizations prevent/avoid this scenario, or are all AS end users making clearing entries to variance and accrual accounts?
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