ANS-1483 · ACCOUNTING & FINANCIAL CONFIGURATION
How to Resolve Accrued Purchase Variance Between Item Receipt and Vendor Bill?
Ensure accurate exchange rate variance posting for standard costing items by correctly linking item receipts to vendor bills in NetSuite.
Short answer
To resolve discrepancies where accrued purchase is not fully debited on vendor bills due to exchange rate variances, ensure the 'Receipt' field is visible on the Vendor Bill form. This field automatically links the vendor bill to its corresponding item receipt, allowing NetSuite to correctly post only the exchange rate difference to the gain/loss account, especially for standard costing environments.
Scenario
Clients utilizing standard costing for inventory items, particularly those with multi-currency transactions across various subsidiaries, may encounter issues with accrued purchase accounts. Specifically, when an item is purchased in a foreign currency, the accrued purchase account may not be fully debited on the vendor bill. While exchange rate differences between the item receipt and vendor bill are normal, the accrued purchase account should ultimately reconcile to the sum of all item receipts awaiting vendor bills, which may not be occurring.
Solution
The primary challenge arises when NetSuite's 'Post Vendor Bill Variance' functionality cannot establish the necessary link between a vendor bill and its corresponding item receipt. This prevents the system from accurately posting only the exchange rate difference to the designated gain/loss account, potentially leading to incorrect full debits of the accrued purchase amount.To resolve this and ensure proper exchange rate variance posting:
Confirm that the 'Match Bill to Receipt' checkbox is enabled on the Purchase Order. This setting is often active by default.
Make the 'Receipt' field visible on the Vendor Bill form. This field is essential for NetSuite to automatically populate with the Item Receipt number during vendor bill creation, thereby establishing the critical link.Note: If the 'Receipt' field is added to the form after a vendor bill has already been created, it will not automatically populate. In such instances, the relevant item receipt number must be manually entered into the 'Receipt' field on the vendor bill.It is observed that this specific linking issue, particularly concerning the 'Post Vendor Bill Variance' process, appears to be more common in NetSuite environments configured with standard costing rather than average costing.
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