Program Description
This program can be found on the Purchase Order Reports menu (PO-4-4). The main purpose of the Variance Report is to provide an analysis of the receipt cost of an item on a purchase order versus the actual invoiced cost. Normally the receipts of the items on a purchase order are entered into P.O. Receipts, prior to the entry of the Accounts Payable invoice of the items. The cost that is accepted during P.O. Receipts is normally the quoted cost, since the invoice has not yet been received or not entered into the system. The receipt cost may be different than the actual invoiced cost. It is the receipt of the item that updates the last and average cost of the item in the Item (ITEM) File. It is the last or average cost that is written into the Sales Analysis (SALID), Sales History (SHHIST.DT) and Accounts Receivable (ARECD) Files from the billing of the items to customers. The cost from the Sales Analysis Files is the cost that is written to the General Ledger for the cost of goods. This entry is made during the A/R End Of Month Procedures. If invoices are entered on items with a receipt and A/P invoiced cost discrepancy, the wrong cost is written into these files.
The Variance Report only includes the items on purchase orders that have been received and invoiced. The received and invoiced cost is included, whic identifies items that may need corrections in the Sales Analysis, Sales History, and A/R Files. The total dollar amount difference between the received and invoiced cost is included on the Variance Report. This can be used to enter a journal entry into the General Ledger to correct the wrong cost posting to the General Ledger from the A/R End of Month posting of Sales Analysis. The Variance Report gathers all data from the Pending Files. Pending Files are updated in P.O. Receipts, AP Invoice Entry, AP Invoice Void, and AP Manual Check Entry, and AP Invoice Void. The cost that is entered on the receipt and invoice for each item is written into the Pending Files. This is how the Variance Report includes the received and invoiced costs. The quantity received and invoiced is also stored in the Pending File. This is how the Variance Report knows that the quantity shipped and received is equal. Pending Files remain on the system until they are purged by the Pending File Purge. When purging the Pending File, it is important to run the Variance Report prior to the purge and for the time period that is being purged. The items that are included on the Variance Report can be selected by the G/L account numbers that were entered on the A/P invoice for each item and also by the invoice dates. The items included on the report are sorted by the G/L account number, followed by the product class of the item. This makes it easier to identify the amount and the G/L account that may need an entry to correct any discrepancies in cost.
Rev 14 Changes
When this report is ran during the End Of Month Report chain, it gave an undimensioned String stop at line 6010. This has been corrected.
Rev 13 Changes
A second line was added on the detail version of the report to show Product Class Description from Product Class File (PFD) and Item Description. With the addition of the ability to override the item description on the purchase order, a change was made to print the overridden item description of the line items where the description was overridden. If the description was not overridden, the item description from the Item data file (ITEM) will print.
Internal program changes were made to correct a problem of the report not printing during the End of Month Reports chain if the Print to Disk option was chosen.
The Product Class Description and Item Number Description were moved to a second line and on line number one, the Quantity Received (Recd Qty) and the Variance Per Quantity Received (Var/Qty) were added to the report. The Variance Per Quantity Received is calculated by taking the Variance Amount divided by the Received Quantity.
Results
The following screen display is for all GL account numbers and invoice dates:
