PO variances

Yahoo Archive
1
If possible you may want to consider measuring bar stock by ft not a length
of random tube.

INNOVATIVE OFFICE PRODUCTS,INC.
Frank Zeigafuse
Dir. of MIS/Purchasing Manager
2100 Liberty St.
Easton, PA 18042
610-253-9554x16
fzeigafuse@...
2
Hello Vantage Users

I would like to know how others are handling the following... We buy steel bar priced by the foot. We issue a purchase order to our vendor for a given amount of material (let's say 20 feet.) The vendor quotes us a price of $7.00 per foot and that is entered into the PO. The vendor ships us 23 feet (because bar usually comes in 17 - 24 foot random lengths) and that is what we receive into inventory. The vendor's invoice says $161.00 (23 x 7) and our PO says $140.00. A variance of $21.00. Our accounting people want to know why there is a variance on the PO. Are we missing something on this variance thing? Is there some way to correct our procedure?

thank you
Mel


[Non-text portions of this message have been removed]
3
We have similar except its pounds of rubber. We can order a specific amount
but due to vendor processing its never exact. Since in 3.0 the PO doesnt
close unless its exact the Material manager goes back into the PO and
adjusts the amounts till they match the received amount. The PO closes, and
there is no variance. We have report builder reports that are run after the
receiving day ends. (Clerk goes home at 3) to see everything that's been
received and what variances there are.

Shirley H. Graver
Systems Administrator
Rubber Associates Inc. (Certified to QS9000/ISO9002)
Cleveland/Akron, Ohio



[Non-text portions of this message have been removed]
4
If the vendor ships you 23 feet what is the quantity you are receiving? It
should be 23 feet even if you ordered 20 feet. If the po is coming across
with $140 from the receipt then your receiving quantity is what is
incorrect.

> -----Original Message-----
> From: gilsonscreen@... [mailto:gilsonscreen@...]
> Sent: Tuesday, November 14, 2000 1:53 PM
> To: onelist
> Subject: [Vantage] PO variances
>
>
> Hello Vantage Users
>
> I would like to know how others are handling the following... We
> buy steel bar priced by the foot. We issue a purchase order to
> our vendor for a given amount of material (let's say 20 feet.)
> The vendor quotes us a price of $7.00 per foot and that is
> entered into the PO. The vendor ships us 23 feet (because bar
> usually comes in 17 - 24 foot random lengths) and that is what we
> receive into inventory. The vendor's invoice says $161.00 (23 x
> 7) and our PO says $140.00. A variance of $21.00. Our
> accounting people want to know why there is a variance on the PO.
> Are we missing something on this variance thing? Is there some
> way to correct our procedure?
>
> thank you
> Mel
>
>
> [Non-text portions of this message have been removed]
>
>
>
> We no longer allow attachments to files. To access/share Report
> Files, please go to the following link:
> http://www.egroups.com/files/vantage/
> (Note: If this link does
> not work for you the first time you try it, go to
> www.egroups.com, login and be sure to save your password, choose
> My Groups, choose Vantage, then choose Files. If you save the
> password, the link above will work the next time you try it.)
>
5
the difference is created from the inventory unit of measure being different
than the purchase unit of measure. We inventory
tube in 21 ft. lengths but our supplier sells to us in lbs. A tube has a
standard weight of say 250 lbs but due to production
variances that same length of tube could be 265 lbs and thus your invoice
from your supplier will have a different total. This
should be viewed as a price variance for accounting purposes, as your
inventory quantities are correct.
-----Original Message-----
From: Jim Frice [mailto:Jim.Frice@...]
Sent: Tuesday, November 14, 2000 5:25 PM
To: vantage@egroups.com
Subject: RE: [Vantage] PO variances


If the vendor ships you 23 feet what is the quantity you are receiving? It
should be 23 feet even if you ordered 20 feet. If the po is coming across
with $140 from the receipt then your receiving quantity is what is
incorrect.

> -----Original Message-----
> From: gilsonscreen@... [mailto:gilsonscreen@...]
> Sent: Tuesday, November 14, 2000 1:53 PM
> To: onelist
> Subject: [Vantage] PO variances
>
>
> Hello Vantage Users
>
> I would like to know how others are handling the following... We
> buy steel bar priced by the foot. We issue a purchase order to
> our vendor for a given amount of material (let's say 20 feet.)
> The vendor quotes us a price of $7.00 per foot and that is
> entered into the PO. The vendor ships us 23 feet (because bar
> usually comes in 17 - 24 foot random lengths) and that is what we
> receive into inventory. The vendor's invoice says $161.00 (23 x
> 7) and our PO says $140.00. A variance of $21.00. Our
> accounting people want to know why there is a variance on the PO.
> Are we missing something on this variance thing? Is there some
> way to correct our procedure?
>
> thank you
> Mel
>
>
> [Non-text portions of this message have been removed]
>
>
>
> We no longer allow attachments to files. To access/share Report
> Files, please go to the following link:
> http://www.egroups.com/files/vantage/
> (Note: If this link does
> not work for you the first time you try it, go to
> www.egroups.com, login and be sure to save your password, choose
> My Groups, choose Vantage, then choose Files. If you save the
> password, the link above will work the next time you try it.)
>


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[Non-text portions of this message have been removed]
6
WE BUY IN 20' LENGTHS AND IT IS PRICED PER PIECE. SHOULD WE SPECIFY RML
( RANDOM MILL LENGTH) THE THREE WAY CHECK SHOULD ACCOUNT FOR THE
VARIANCE. THE RECEIVER AND INVOICE SHOULD MATCH AND SINCE WE SPECIFIED
RML ON THE PO, ACCOUNTING SHOULD KNOW THE VARIANCE IS ACCEPTABLE. IF
WE DON'T SPECIFY RML, THEN PURCHASING DOESN'T WANT TO ACCEPT THE OVERAGE
AND BOTH RECEIVING AND ACCOUNTS PAYABLE KNOW IT.

.
-----Original Message-----
From: gilsonscreen@... [SMTP:gilsonscreen@...]
Sent: Tuesday, November 14, 2000 2:53 PM
To: onelist
Subject: [Vantage] PO variances

Hello Vantage Users

I would like to know how others are handling the following...
We buy steel bar priced by the foot. We issue a purchase order to our
vendor for a given amount of material (let's say 20 feet.) The vendor
quotes us a price of $7.00 per foot and that is entered into the PO.
The vendor ships us 23 feet (because bar usually comes in 17 - 24 foot
random lengths) and that is what we receive into inventory. The
vendor's invoice says $161.00 (23 x 7) and our PO says $140.00. A
variance of $21.00. Our accounting people want to know why there is a
variance on the PO. Are we missing something on this variance thing?
Is there some way to correct our procedure?

thank you
Mel


[Non-text portions of this message have been removed]


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7
ditto

-----Original Message-----
From: Mike Thompson [SMTP:mthompson@...]
Sent: Wednesday, November 15, 2000 8:05 AM
To: vantage@egroups.com
Subject: RE: [Vantage] PO variances

the difference is created from the inventory unit of measure
being different
than the purchase unit of measure. We inventory
tube in 21 ft. lengths but our supplier sells to us in lbs. A
tube has a
standard weight of say 250 lbs but due to production
variances that same length of tube could be 265 lbs and thus
your invoice
from your supplier will have a different total. This
should be viewed as a price variance for accounting purposes, as
your
inventory quantities are correct.
-----Original Message-----
From: Jim Frice [mailto:Jim.Frice@...]
Sent: Tuesday, November 14, 2000 5:25 PM
To: vantage@egroups.com
Subject: RE: [Vantage] PO variances


If the vendor ships you 23 feet what is the quantity you are
receiving? It
should be 23 feet even if you ordered 20 feet. If the po is
coming across
with $140 from the receipt then your receiving quantity is what
is
incorrect.

> -----Original Message-----
> From: gilsonscreen@... [mailto:gilsonscreen@...]
> Sent: Tuesday, November 14, 2000 1:53 PM
> To: onelist
> Subject: [Vantage] PO variances
>
>
> Hello Vantage Users
>
> I would like to know how others are handling the following...
We
> buy steel bar priced by the foot. We issue a purchase order
to
> our vendor for a given amount of material (let's say 20 feet.)
> The vendor quotes us a price of $7.00 per foot and that is
> entered into the PO. The vendor ships us 23 feet (because bar
> usually comes in 17 - 24 foot random lengths) and that is what
we
> receive into inventory. The vendor's invoice says $161.00 (23
x
> 7) and our PO says $140.00. A variance of $21.00. Our
> accounting people want to know why there is a variance on the
PO.
> Are we missing something on this variance thing? Is there
some
> way to correct our procedure?
>
> thank you
> Mel
>
>
> [Non-text portions of this message have been removed]
>
>
>
> We no longer allow attachments to files. To access/share
Report
> Files, please go to the following link:
> http://www.egroups.com/files/vantage/
> (Note: If this link does
> not work for you the first time you try it, go to
> www.egroups.com, login and be sure to save your password,
choose
> My Groups, choose Vantage, then choose Files. If you save the
> password, the link above will work the next time you try it.)
>


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Files,
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www.egroups.com, login and be sure to save your password, choose
My Groups,
choose Vantage, then choose Files. If you save the password,
the link above
will work the next time you try it.)



[Non-text portions of this message have been removed]


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