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

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

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