{"id":753,"date":"2021-09-29T07:42:32","date_gmt":"2021-09-29T07:42:32","guid":{"rendered":"https:\/\/www.saturotech.com\/blog\/?p=753"},"modified":"2024-03-18T19:33:33","modified_gmt":"2024-03-18T19:33:33","slug":"posting-vendor-bill-variances-in-netsuite","status":"publish","type":"post","link":"https:\/\/saturotech.com\/blog\/posting-vendor-bill-variances-in-netsuite\/","title":{"rendered":"Posting Vendor Bill Variances in NetSuite"},"content":{"rendered":"\n

Posting Vendor bill variance is used to reconcile the variance amount of, item receipt and vendor bill.  <\/p>\n\n\n\n

If you want to procure the items from the vendor in NetSuite we will enter purchase orders, Item receipts, and vendor bills, each transaction can show a quantity, price, and exchange rate for the items. <\/p>\n\n\n\n

While entering purchase-related transactions in NetSuite If there is any difference between the quantity and price a remaining value may post to the Accrued Purchases account. If you have enabled the Advanced Receiving<\/strong> feature in NetSuite, you can use the vendor bill variances process to generate journal postings to variance accounts based on the differences. <\/p>\n\n\n\n

Please find below an example of the process in NetSuite to reconcile the variances using the Post Vendor Bill variances page.<\/strong><\/p>\n\n\n\n

Step1:<\/strong> Create Purchase Order with Item Quantity = 10<\/strong> and Item Rate = $50.00<\/strong><\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n

Step 2:<\/strong> Create Item Receipt with Item Quantity = 10<\/strong> and Item Rate = $45.00<\/strong> <\/p>\n\n\n\n

The amount on the item receipt shows (10*45) $450. This amount is inventory received not billed.  <\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n

Step 3:<\/strong> Create vendor bill with Item Quantity = 12<\/strong> and Item Rate = $55.00<\/strong> <\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n

The amount on the vendor bill shows (12*55) $660. This amount is accounts payable. <\/p>\n\n\n\n

Above transactions, the amounts on the item receipt and vendor bill do not match, the remaining amount ($660 – $450 = $210) needs to be reconciled. To resolve these types of differences, In NetSuite, we will create post variance journal entries using the Post Vendor Bill Variances page. <\/p>\n\n\n\n

Posting Vendor Bill Variances:<\/strong> <\/p>\n\n\n\n

Navigation:<\/strong> Go to Transactions >> Payables >> Post Vendor bill Variance. <\/p>\n\n\n\n