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Question

PPV Adjustment on Bill

  • June 25, 2026
  • 2 replies
  • 29 views
N
Freshman I
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I am currently encountering a specific case regarding the Purchase Price Variance (PPV) logic on the system and would appreciate your insights on it.

Here is the exact sequence of documents:

  1. Purchase Order: Unit Cost = Y

  2. Purchase Receipt 1: Unit Cost = X

  3. Purchase Receipt 2: Unit Cost = Y

  4. AP Bill: Unit Cost = Y (applied to Purchase Receipt 1)

When I Save the Bill, Estimated PPV Amount = 0, I Release the Bill, the system automatically generates and recognizes a PPV Adjustment.

Could you please help me understand under what specific scenarios or configurations the system behaves this way?

 

2 replies

R
Acumatica Employee

Hello ​@nomii 

The following help articles may help you better understand the scenario and provide additional information on PPV adjustments

Allocating the Purchase Price Variance

Purchase Price Variance Allocation: Example 2

Thank you. 

    LeanneM
    Semi-Pro III
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    • LeanneM
    • Semi-Pro III
    • July 1, 2026

    PPV is the difference between the cost on the PO receipt to the cost on the bill. 

    When you receive the stock, it updates stock value at that point (defaults to cost on the PO but you can change it) so if its at the wrong cost to the bill, the difference is PPV.

    You can set the PPV to go to the inventory account under Purchase Order Preferences. 

    Just change the allocation mode to inventory account and it will update the cost of the stock rather than the PPV GL account.

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