PROCESSING INVENTORY PRICE VARIANCE

Question

Hi everyboby.
I have this problem. I'm looking (without founding it) a standard method to shift inventory price variance account values in the inventory values. At the moment when there is a case of invoice price higher or lower than the purchase order one and consequently the inventory price variance account is used, we don't find any way to transfer that amounts into the inventory to correct the value of material.
I hope the problem is clearly descripted. Is there one that knows the procedure to transfer from inventory price variance the lower or higher value of material ?
Thanks a lot !
Marina

Answer 1

Cost management Documentation talks about Transfer Invoice Price Variance - following the text for documentation ...
Thanks
Yadira
Transferring Invoice Variance
You can transfer variances between purchase order price and invoice price back to inventory, from your user-defined adjustment account, usually an IPV account. This enables you to value your inventory at costs as close to actual as possible.
The transfer process picks up only invoices that have been posted to GL to ensure that the invoices are approved for payment, and that variances can be added back to inventory.
Note: Support for Project Manufacturing: If the IPV transfer is for material belonging to a specific project, only that project's inventory will be revalued and its item costs rearranged.
For any open period, you can specify the date of the IPV transfer. You can override the default date for each transaction on the Transaction Open Interface form before submitting them for update.
You can only run the transfer process for one organization at a time.
You can only specify one adjustment account when running this transfer process. You can make changes to the material account for each adjustment transaction on the Transaction Open Interface form.
Note: The Invoice Variance Transfer is listed as an average cost update in the Item Cost History or View Material Transaction inquiry.
Navigate to Transfer Invoice Variance:
1. Select Transfer Invoice Variance to Inventory Valuation.
2. Select following parameters:
Transfer Description (Optional)
Item Range
Specific Item
Category Set
Specific Category
Invoice Option
Specific Project
Adjustment Account
Invoice Cutoff Date
Automatic Update
If you choose Yes, the process automatically updates the inventory.
If you choose No, the process creates cost update open interface transactions and submits them to the Inventory Interface Manager. You can then run the Invoice Transfer to Inventory Report, review it, and submit transactions using the Inventory Transaction Open Interface manager. See: Viewing and Updating Transaction Open Interface Activity.
3. Choose OK.
4. Choose Submit.