# Item Price Variance

<p class="doc-lead">Compares current purchase order item prices against the previous purchase price, showing difference, percentage change, and total savings or extra cost. Use it to control procurement costs and support supplier negotiations.</p>

<div class="doc-toc">
<p class="doc-toc-title">On this page</p>
<div class="doc-toc-links">
<a href="#/purchase/reports/item-price-variance?id=overview">Overview</a>
<a href="#/purchase/reports/item-price-variance?id=use-cases">Use Cases</a>
<a href="#/purchase/reports/item-price-variance?id=filters">Filters</a>
<a href="#/purchase/reports/item-price-variance?id=columns">Columns</a>
<a href="#/purchase/reports/item-price-variance?id=actions">Actions</a>
<a href="#/purchase/reports/item-price-variance?id=faq">FAQ</a>
</div>
</div>

<hr class="doc-section-divider">

<h2 id="overview">Overview</h2>

Go to <b>Purchase → Order Reports → Purchase Order Item Price Variance</b>.

<p><b>What it shows.</b> Each row is an item on a purchase order with previous price, current price, quantity, absolute and percentage variance, calculated savings or extra cost, and optional notes.</p>

<p><b>When to use it.</b> Flag price increases before PO approval, quantify savings from negotiated rates, and monitor branch-wise price consistency for the same item.</p>

<hr class="doc-section-divider">

<h2 id="use-cases">Use Cases</h2>

<ul>
<li><b>Pre-approval cost check</b> — Review lines with large positive variance before confirming new purchase orders.</li>
<li><b>Negotiation evidence</b> — Export savings on lines where current price is below the previous price to document supplier discounts.</li>
<li><b>Branch price audit</b> — Filter by branch to find the same item ordered at different rates across locations.</li>
<li><b>Budget impact</b> — Sum extra cost on increased-price lines to adjust procurement forecasts.</li>
</ul>

<hr class="doc-section-divider">

<h2 id="filters">Filters</h2>

<ul>
<li><b>Date Range</b> — Limit purchase orders to a specific period.</li>
<li><b>Branch</b> — View variance for a particular branch.</li>
<li><b>Item / Item Group / Supplier</b> — Focus on specific items, categories, or vendors.</li>
<li><b>Order Number</b> — Restrict to one or more purchase orders.</li>
</ul>

<hr class="doc-section-divider">

<h2 id="columns">Columns</h2>

| **Column** | **Description** |
|------------|-----------------|
| **Branch** | Branch or location for the purchase order. |
| **Order#** | Purchase order number. |
| **Date** | Date of the purchase order. |
| **Item** | Item name or description on the order line. |
| **Prev Price** | Previous purchase price used for comparison. |
| **Price** | Current price on the order line. |
| **Net Qty** | Quantity ordered on the current line. |
| **Difference** | Absolute difference (<code>Price − Prev Price</code>). |
| **Difference %** | Percentage change from the previous price. |
| **Savings** | Total impact (<code>Difference × Net Qty</code>); negative values indicate extra cost. |
| **Note** | Remarks explaining the price change. |

<hr class="doc-section-divider">

<h2 id="actions">Actions</h2>

<ul>
<li><b>View Details</b> — Open the purchase order and item price history.</li>
<li><b>Export</b> — Download to Excel or PDF for audit or cost analysis.</li>
<li><b>Filter &amp; Sort</b> — Refine by branch, item, supplier, or date.</li>
</ul>

<hr class="doc-section-divider">

<h2 id="faq">FAQ</h2>

<b>What previous price is used?</b><br>
The system compares against the last recorded purchase price for the same item (and typically supplier/branch context per configuration).

<b>Why is prev price blank for some lines?</b><br>
No prior purchase exists for that item in the comparison scope, so there is no baseline price.

<b>Is a positive difference always bad?</b><br>
A positive difference means the current price is higher than the previous price, increasing cost. Negative difference indicates a price reduction (savings).

<b>Can I add notes to explain variance?</b><br>
Yes. Use the <b>Note</b> field on order lines or master data where your workflow supports documenting price change reasons.

<b>Why does the date range fail validation?</b><br>
This report allows a maximum range of about three months. Select a shorter from/to period and run again.

<b>Which purchase orders are compared?</b><br>
Approved PO lines in the period are compared to the previous PO line price for the same item (and supplier context per configuration).

<b>Why is my report empty?</b><br>
No purchase order lines match the filters, or no prior purchase exists to compute variance.