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

This example shows a PO and receipt for 1ea at $25 and a bill for 2ea at $25 or $50 total, resulting in a $25 variance. The variance will be handled by NetSuite as an automated journal entry by following the steps below…

The solution is provided below:

• Setup>Accounting>Accounting Preferences>Items/Transactions
• Assign default Bill Quantity Variance Account, example below – resolves variances between quantities on bills and receipts
  
  
• This account (5095 Bill Quantity Variance) will post a debit on the Journal Entry, as it is auto generated (see final step)

Example Quantity Variance scenario:

• PO is created for an item – 1ea at $25
• Receipt is generated for 1ea at $25
• Bill is generated for 2ea at $25, total $50
  – Results in a quantity variance between bill and receipt
• Go to Post Vendor Bill Variances
• Select PO checkbox with PO variance – see below, check correct PO#
  
• Select Create Journal Entries button – this will auto create the J/E
  
• View the J/E for the DR and Cr entries – see below
  
  

For further help and information:

Go to NetSuite Support – SuiteAnswers and type in Vendor Bill Variances

Or feel free to contact us directly at thoughtleader@keystonebusinessservices.net.