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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Price variance in acco...
Microsoft Dynamics AX (Archived)

Price variance in accounting distribution (PO Invoice)

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Posted on by Community Member

Hi All,

Do anyone know why there is price variance in the accounting distribution when posting the PO invoice?

This happened for partial invoice. So when we try to post the second invoice for the PO, we there will be price variance with the same amount as first invoice.

Example :

The quantity in the PO line : 100 unit

Unit price : USD 3.00

Invoice 1 :

Quantity : 25 Unit

Net amount : 25 * 3 = USD 75

Invoice 2 :

Quantity : 75 Unit

Net amount : 75 * 3 = USD 225

But in the accounting distribution for the invoice 2, there is price variance with amount USD 75.

Do anyone know why there is price variance for this case?

Thanks,

Jimmi

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I have the same question (0)
  • Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hello Jimmi,

    Is the price that is invoiced different from the one that you used when posting the packing slip?

    I regularly see a "variance" once prices are changed.

    From a ledger accounting perspective everything looks typically fine. Is this also the case for you? Do your ledger accounts match and balance?

    Ludwig

  • Community Member Profile Picture
    Community Member on at

    Hi Ludwig,  

    Thanks for the reply.

    I don't do the product receipt for the PO. I'm just post the invoice without product receipt.

    And I don't change the price for the item so the unit price for the invoice is same with the price on the PO.

    But I don't know why in the accounting distribution the system show :

    Net amount : 225.00 USD

        Extended price : 300.00 USD

        Price variance : -75.00 USD

    Thanks,

    Jimmi

  • Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hello Jimmi,

    How is your item setup? I mean what cost price & purchase price is setup in the released product form?

    Have you tested what happens if you split up the invoicing into 3 parts lets say with invoice 1 for 75$, invoice 2 for 200$ and invoice 3 for 25$. What variance do you see then?

    Ludwig

  • Community Member Profile Picture
    Community Member on at

    Hi Ludwig,

    We don't setup the purchase price in the released product form.

    And the item using the item model group with below setup :

    Stock : Ticked

    Post physical & financial inventory : Not ticked

    Accrue liability : Ticked

    Inventory model : FIFO

    And I have tried to split the invoicing to 3 part like you suggested and I got below result :

    Invoice 1 :

    Quantity : 25 Unit

    Net amount : 25 * 3 = USD 75

    Invoice 2 :

    Quantity : 70 Unit

    Net amount : 70 * 3 = USD 210

    Invoice 3 :

    Quantity : 5 Unit

    Net amount : 5 * 3 =  USD 15

    And now there is no price variance for invoice 2. But in invoice 3, there is price variance in the accounting distribution like below :

    Net amount : 15.00 USD

       Extended price : 300.00 USD

       Price variance : -285.00 USD

    Somehow, the variance only show up when I try do post invoice for the remaining amount of the PO.

    Thanks,

    Jimmi

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hello Jimmi,

    On what AX2012 System are you running?

    I cannot replicate the issue in my demo system

    Have you checked LifeCycle Services for an available hotfix?

    Ludwig

  • Community Member Profile Picture
    Community Member on at

    Hi Ludwig,

    I am using AX 2012 R2 CU 7 (6.2.1000.4051).

    I haven't check in LCS as I want to know first what is the price variance in accounting distribution. Thanks..

    Thanks,

    Jimmi

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hello Jimmi,

    According to this site (community.dynamics.com/.../overview-of-microsoft-dynamics-ax-build-numbers) your AX Version is from November 2013.

    I believe this is the reason why you get this strange behavior. In early 2014 a hotfix (KB2950163 "Incorrect line distributions during the partial invoicing of the purchase order") has been released that seems to fix the very problem you report.

    MS does not suggest implementing single Hotfixes but rather the whole CU package. So I would suggest that you talk with one of your developers on whether or not you upgrade to the latest CU for AX2012 R2 or whether they will try installing this single hotfix.

    All the best,

    Ludwig

  • Community Member Profile Picture
    Community Member on at

    Hi Ludwig,

    Thanks for your information.

    I'll asked my technical team for this and see if it is working or not.

    Hopefully this can fix my issue.

    Once again, thanks for your help.

    Thanks,

    Jimmi

  • Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hello Jimmi,

    Would be great if you could keep us updated on that issue.

    Many thanks and all the best,

    Ludwig

  • Community Member Profile Picture
    Community Member on at

    Hi Ludwig,

    Okay, I will update you once we finish apply the hotfix.

    Thanks for your help.

    Thanks,

    Jimmi

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