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

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

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