Procure to Pay — How to Handle a Price Variance in NetSuite

This example shows a PO (Purchase Order) for $25 and an invoice for the correct price of $30, resulting in a $5 variance. The variance will be handled by NetSuite as an automated journal entry.

Simply follow the steps below for the solution:

• Setup > Accounting > Accounting Preferences > Items / Transactions
• Assign default Bill Price Variance Account, example below:
  
• This account (5096 Bill Price Variance) will post a debit on the Journal Entry, as it is auto generated (see final step).
• Example Price Variance scenario:
  • PO is created for an item at $25
  • Receipt generated
  • Invoice for $30 (note: $30 is the correct price, not $25)
  • Go to Post Vendor Bill Variances
• Select PO checkbox with PO variance – see below:
  
• Select Create Journal Entries button – this will auto create the J/E
  
  • View J/E to for DR and CR entries – see below:
    

Further Help/Information:

Go to NetSuite Support–SuiteAnswers and type in Vendor Bill Variances. Or you can contact us directly at thoughtleader@keystonebusinessservices.net.