Let's Reconnect, thank you for making 2022 our best year yet.

Look Back
Purchase Price variance — Cloud Customer Connect
You're almost there! Please answer a few more questions for access to the Applications content. Complete registration
Interested in joining? Complete your registration by providing Areas of Interest here. Register

Purchase Price variance

Received Response
edited Mar 24, 2019 11:04AM in Costing 1 comment


Purchase Price variance



When there is a purchase price variance, customer needs to defer this expense/profit. 

Say for an example, Standard cost price - 10 USD for an item, Purchase price - 12 USD. There is a loss of 2 USD which will be recognized in the Profit and loss account in the period which it is incurred, Can this be deferred to the period which the goods are manufactured.

Can someone advise on the PPV  and its treatment.  

Howdy, Stranger!

Log In

To view full details, sign in.


Don't have an account? Click here to get started!