Purchase Price Variance when the overhead is setup on purchased item in costing sheet (cost of purchase)

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Posted on by Abhi Agarwal

Hello there, I am encountering a unique situation here, at one of my clients we have the Cost of Purchase setup in costing sheet with a Overhead percentage. There is a purchase price for the item specified in costing version and the cost is rolled up via calculation on the costing version.

Now I am purchasing this item at the same purchase price as is activated, its calculating the overhead and taking credit for it as well, however its calculating a random PPV debiting it and offsetting it against the credit for overhead.

There should not be any PPV as I am purchasing the item at the activated purchase price. Has any one else encountered this issue. ?

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