Resolving Invoice Variances from the Purchase Order Variance Queue

The system finds variances either in cost or in quantity when receiving an order. After finding a variance on a purchase order using the Purchase Order Variance Queue, you can drill into the purchase order and resolve the variance. You indicate what kind of discrepancy you have determined the variance to be and mark the purchase order as resolved and approved for processing. The payable can then be sent to the vendor in the right amount to cover the expense.

The system keeps a log to track your resolutions so you can recall them later, if needed.

Note: To display summary information for this queue at all times, add a P/O Variance widget to your Solar Eclipse main window.

To resolve an invoice variance:

  1. From the Purchase > Queues menu, select P/O Variance to display the Purchase Order Variance Queue.

  2. Populate the header fields to review the columns and locate the order you want to resolve.

  3. From the Order menu, select Resolve Varianceto display the Resolve Variance window.

The Variance Details area displays the Closedparts of the invoices that are not resolved to purchase orders:

Field

Description

Variance Amount due to Cost

(View Only) The system displays the cost variance in dollar amounts.

Variance Amount due to Quantity

(View Only) The system displays the quantity variance in dollar amounts.

Total Variance

(View Only) The system displays the total amount in dollars the purchase order varies from the received vendor invoice.

Deduct Amount

(View Only) The amount the system deducts to account for the resolution. This amount adjusts based on the purchase orders you select.

Total Other P/O Gens

(View Only) The total amount in the table of any other P/O generations that you want to include as part of the variance resolution. For example, if you had created a credit and rebill to fix a cost or quantity issue you would include those P/O generations.

Remaining Variance

(View Only) The final amount that must be addressed before the system recognizes complete resolution.

  1. In the Deduct / Reason area, select DeductCost Deduction and/or DeductQuantity Deduction based on the types of variances you are resolving and select a reason for each to apply to the resolution. The solutions are pre-defined in the P/O Variance Resolution Reasonscontrol maintenance record.

Note: If a purchase order has been automatically resolved, the system displays "Auto Resolve" in the Cost Deduction field.

If a variance is within acceptable limits, based on the A/P Over/Short Maximum Parameterscontrol maintenance record, the system marks the variance resolved.

  1. In the Specify other P/O Generations that apply to this Vendor Invoice area, select the purchase orders you want to apply to the invoice to resolve the variance. If a invoice is reconciled to another payable that has already been paid, that payable does not display.

  1. In the Notes area, populate the Closedcorresponding notes, as needed.

    Note

    Description

    Resolution Notes

    Enter any notes that need to be kept with the payable information. For example, if you received a discount from your vendor, but it was not applied to your invoice, list that quote number in the resolution notes to keep the information with the payable.

    If a payable has unresolved P/O variances reconciled to it and the approval flag is set to yes, the system marks the variances as resolved and adds notes to this Resolution Notes field. In addition, the system marks the information in the change log of the payable.

    Note: Any notes entered in this field display on the Payable change log.

    A/P Remittance Notes

    Enter any notes that need to be kept with the remittance information. For example, if you received a discount from your vendor, but it was not applied to your invoice, list that quote number in the remittance notes to keep the information with the check information to indicate the reason for the difference between invoice and check amounts.

    Note: Any notes entered in this field display on the Check Remittance.

Note: If the order is a lot-billed order, the system may display the material details window for the user to check information, such as lot price, before resolving the variance. If the user selects the Material Detail Needed check box on the A/P Open Lot Item window, then the order displays in this queue.

The system displays a check mark to indicate if the resolution has been resolved adequately.

  1. If resolved within allowed variances, then select one of the following:

  2. If you have the POE.POST.DEDUCT authorization key or the AP.ALLOWED set to Level 1, then click Create A/P Deduction to create the A/P deduction.

  3. If you are not authorized to create A/P deductions, click Sent to A/P Preview Queue for the accounts payable personnel to address for final approval and payment.

Important: The system does not remove the purchase order from the P/O Variance Queue until Accounts Payable has the system cut a check to that vendor for the purchase order. The system displays a check mark next to the items that have been resolved.

  1. Click Save to save the information at any point during the process to save your progress.

  2. Continue resolving other purchase orders or exit the queue.

More Options for the P/O Variance Resolution Window

To...

Do this...

send an invoice that has been mismatched to a purchase order

Select the Incorrect P/O generation attached to payable check box:

Click Send to A/P Preview Queue.

send any unresolved variances to accounts payable for review and resolution

Click Send to A/P Preview Queue.

identify an over and short parameter account to automatically post to

Use the G/L Automatic Posting program to enter a specific account to use.

Use the A/P Over/Short Maximum Parameterscontrol maintenance record to turn on the automatic posting functionality.

See Also:

Managing Variances Using the P/O Variance Queue

Reconciling Purchase Orders to Invoices

Entering and Editing Payables

Automatically Approving Invoices with P/O Variances