P/O Invoice Variance is a feature set developed by SageAPA to assist accounting teams and approvers to visibly see and control what happens when values on a P/O Invoice has variance compared to it's matched P/O(s).
What is considered variance?
Variance in SageAPA is defined as the difference between the P/O / Receiving data imported from Sage 100 and P/O Invoice in SageAPA.
For example you've matched an imported P/O to an Invoice in SageAPA. You've adopted coding from the Purchase Order to the Invoice and then adjusted values such as Unit Cost, Qty or Total. This creates a variance between what Ordered/Received and what being Invoiced by Vendor.
Why use P/O Invoice Variance Approval Channels?
Many our customers use variance approval channels to control what happens to a P/O Invoice when values have been adjusted to a value that breaks their tolerance.
We give you the ability to set a percentage value that is within your tolerance remit, as often companies have a tolerance for variance on their P/O Invoices, usually up to a certain percentage.
For example, it's very common when dealing with liquids to expect a variance between what was ordered, received and invoiced. Giving you the ability to set a tolerance ensures that P/O Invoices which remain inside that set tolerance aren't obstructed in the approval process. Whereas P/O Invoices which do break that tolerance are escalated to the appropriate approvers for review.
This functionality will empower your accounting team & approvers to make quick decisions on how to proceed in these scenarios.
How is P/O Invoice Variance visualized in SageAPA?
Once you've matched an Invoice to an Imported P/O from Sage 100 in SageAPA. You'll have the ability to adopt the line coding from the imported P/O to the P/O Invoice.
After adopting the line coding to the P/O Invoice it's possible for you to adjust the Unit Cost, Qty or Total Amount on the Invoice
(Please note the Qty value adopted form a P/O line to a Invoice Line is the Qty Received value (from the P/O imported from Sage 100) MINUS the Qty already Invoiced in SageAPA.
When you adjust the values in either the Unit Cost, Qty or Total field, the cells will highlight in Red to indicate the value has been changed after adoption.
If you hover over the cell containing the adjusted value a window will display showing you the original value, adjust value and variance percentage between those values.
How do I control Variance in SageAPA?
P/O Invoice Variance is controlled in SageAPA through your Invoice Approval Channels. You can create approval channels and include a variance percentage tolerance on Quantity, Unit Cost or Total (line total) as a criteria for the channel.
For best results we recommend using either of the following combinations for variance controls: "Quantity", "Unit Cost", "Quantity and Unit Cost", or "Total".
Variance currently only applies to Imported Sage 100 P/O's, it does not apply to P/O's created in SageAPA.
Total Variance applies to the line total of the Invoice. It doesn't apply to the entire P/O Total vs the P/O Invoice total.
It's currently not possible to a 0% criteria in the approval channels although it is possible to set a 0.01% value. If you want to prevent any variance between the P/O and Invoice we recommend using the settings in Sage 100 to prevent a Receiving or Invoice from exceeding what was Ordered.
It's possible with a Unit of Measure change on a line that P/O Invoice will display with variance and meet the criteria of a P/O Invoice approval channel.
Please see the following guide on How to setup P/O Variance Approval Channels
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