Purchase price variance (PPV) is the difference
between the actual purchased price of an item and a standard cost (or
baseline cost, or received cost) of that same item. In systems that process the inbound delivery from the Vendor prior to the Invoice from the Vendor, there can be discrepancies - mainly due to either the Vendor charging more or less than promised - or because the standard / baseline cost is not being updated when prices change.
Does Odoo support this concept?
How would PPV be managed during the processing of the inbound delivery and/or the recording of the vendor invoice?
It seems that this may be a feature which would be unneccisary for my sole trader business.
So, the remaining question is can I leave the "price difference account" field blank or would this cause other problems?
Thanks @Ray. That almost made it work for me.... but I am an I.T. guy, not an accountant. I think the question still in my mind is: why would the PO price be different than the Invoice price? Is this simply just in case of errors? Or is this going to be due to possible fluctuations in currency values? I think that both of those cases would require a DIFFERENT account be used (Expense:VendorError or Currency)
If you (or anyone who can answer) are still monitoring this thread, can you give an example of which accounts you are using for:
Income Account
Expense Account
Price Difference Account
Differences are due to the Vendor charging more or less than they quoted you for and should be investigated. (Many businesses sign quotes and push back on any differences).