Use this screen to identify variances between standard costs and purchased costs or between standard costs and vouchered costs.

This application allows you to create a journal entry (JE) to move the variance amounts to a specified account/organization for standard cost projects. The journal entry is posted by the Post Journal Entries (GLPJE) application.

If you run the process for a subperiod/period other than the last period/subperiod of the fiscal year, a reversing journal entry is created. This journal entry is then posted to the proper project/account/organization, but is automatically reversed when the next reversal adjusting posting for the next subperiod or the first subperiod of the next accounting period occurs.

If the variance calculation is for the last period of the fiscal year, a reversing journal entry is not created. You can run final purchase price variance (PPV) multiple times to allow you to apply updated burden rates (target/actual) and recalculate variance. Each run will only create JE for the difference between the calculated amount and previous JE for that FY/PD/SPD. Every run in final FY/PD/SPD will not create any reversing JE.

This also allows you to store the calculated amounts on a separate summary variance table, so the process can be rerun for the same FY/PD/SPD. The variance process can be run multiple times in a given subperiod/period. Multiple variance JE transactions across subperiod/periods can be open at the same time.

Every time the process generates a journal entry (not just a preview/trial run report), a record is added to the Purchase Price Variance Process log. This log contains the FY/PD/SPD the variance are created for, the date/time stamp from the Inventory Burden Rate table used to calculate the variance, the date/timestamp of the variance the process is run, and the ID of the journal entry created by the process. The user ID of the person generating the variance is also captured in the process.