Variance Type 

Use

In invoice processing, you check that individual invoice items are correct. To ensure that you (for example, in the role of an invoice verification clerk) can find errors in invoice items quickly, the system contains the Variance Type field that is used to sort items with errors. The variance type is the starting point for the invoice verification clerk.
The system uses the Variance Type field to flag possible quantity or price differences in invoice items in the background and sorts these invoice items according to the type of errors found in them.
One type of error would, for example, be the difference between a goods receipt quantity and a purchase order quantity. The system is shipped with similar default error types. Additional customer-specific error types can be implemented using BAdIs.

Features

When you have selected invoices, the system creates a list of items to allow you to check individual items manually and process these further, if necessary.

·        The system checks the invoice items and enters any variances from the purchase order in the Variance Type field.

·        In the standard system, you can choose between the following content for the Variance Type field:

¡        A (purchase-order based invoice verification)

¡        B (goods receipt-based invoice verification)

Provided not all the goods receipts in the system have been posted, the difference quantity between a goods receipt and invoice will not be zero, even if the relevant invoices are correct.

 

·        Using the Variance Type, the system can sort the invoice items.

·        You can then select these items and process them further.

You can use the sort function for invoice items, based on the variance type, in the following two instances:

·        EDI invoices

·        Invoices entered manually

For invoices entered manually, you must check for any variance between the purchase order and the expense invoice and, if necessary, select a variance type according to which the system should sort this variance. Manual corrections are only ever required if invoices have been entered manually.

For EDI invoices, the system automatically flags potential errors between the purchase order and the expense invoice as Unclarified Errors. In addition, you can also process the variance type manually, sort the invoice items and manually process invoice items with errors.

Example

You have one incoming invoice and five invoice items with which you compare the relevant purchase order quantities. If the system identifies differences between the corresponding purchase order and invoice items, it assigns a variance type to the items containing possible errors. If you allow the system to sort the items according to the variance type you can quickly identify items with errors and then process them further.

In the table below, underdelivery has been identified for items 1 and 2, overdelivery for 5 and neither a quantity nor a value difference for 3 or 4.

Item	PO Quantity (1)	GR Quantity (2)	Variance Type	GR- or PO-Based
Item 5	100 PC	105 PC	A	PO-based
Item 1	100 PC	90 PC	A	PO-based
Item 2	70 PC	50 PC	B	GR-based
Item 3	150 PC	150 PC
Item 4	100 PC	100 PC