We are a relatively new company using NetSuite and in process of developing Purchase Price Variance reporting and review procedures. I have read through all relevant SuiteAnswers and Community posts, still need some clarifications and greatly appreciate any and all help.
USE CASE and QUESTIONS
Standard Costing method is used for all Items
Advanced Receiving is enabled
Only USD currency is used, Exchange Rate is not an issue
Inventory Items are purchased from Vendors for use in Manufacturing Assemblies
Typical Purchase Orders are for large quantities with Item Receipts over a period of time and sometimes also include Expenses
Match Bill To Receipt has not been marked for any Items on any Purchase Orders, but we are trying to evaluate if we should be using this feature as a Best Practice
Currently we are using the Bill Purchase Orders page to enter Vendor Bills for purchase of Inventory Items after Item Receipts are entered. Item line Quantity and Rate from Vendor Bill is entered. Sometimes quantity has been greater than Received (or remaining Qty Received but not yet Billed)
Post Vendor Bill Variances process has not been used yet, until we have some clarity on Best Practices for how to Bill Purchase Orders and if the Match Bill To Receipt should be used
Purchase Price Variance impact observed is GL Impact on Item Receipt when PO / IR rate is different than Item Standard Cost at time of Item Receipt, which is understood and as expected.
Questions for clarity and to determine Best Practice for our use case:
Match Bill To Receipt - Should we be using this feature? How does this work with Standard Cost Items? Will a Purchase Price Variance still be posted on Item Receipt when PO/IR rate is different than Standard Cost for an item? And then Bill Variances posted if Post Vendor Bill Variances process is run?
Does use of Match Bill To Receipt affect how Vendor Bill is entered when quantity Billed is greater than Received?
Does use of Match Bill To Receipt affect how Bill Variances (either Quantity or Rate) are calculated in the Post Vendor Bill Variances process?
Thank You so very much!
