ANS-0570 · ACCOUNTING & FINANCIAL CONFIGURATION
How Does Vendor Bill Variance Impact Inventory Valuation in NetSuite?
Understand how NetSuite handles discrepancies between vendor bills and item receipts, and learn a method to ensure accurate inventory costing.
Short answer
Vendor bill variances do not directly affect inventory valuation in NetSuite. To ensure accurate inventory costing, identify transactions with variances using the 'post vendor bill variances' page. Then, correct the corresponding item receipt, if the period is still open, to align with the vendor bill.
Scenario
In NetSuite, users may encounter situations where the cost on a vendor bill differs from the cost recorded on the associated item receipt. This discrepancy, known as a vendor bill variance, raises questions about its impact on inventory valuation and how to maintain accurate costing records.
Solution
Vendor bill variance does not post to inventory and therefore does not affect the inventory valuation. To address this and ensure accurate inventory costing, a workaround involves the following steps:
Utilize the 'post vendor bill variances' page to identify transactions that exhibit a variance.
If the accounting period is still open, correct the item receipt to match the details of the vendor bill.This process helps to reconcile the costs and achieve accurate inventory costing.
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