What is 'Invoice Price Variance' in SAP MM-PUR - Purchasing?

Invoice Price Variance - Overview

• Component: MM-PUR

• Component Name: Purchasing

• Description: This KPI determines the trend in which the invoice price varies over a stipulated time and is calculated quarterly or monthly.

Invoice Price Variance - Details

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  Key Concepts: 
  Invoice Price Variance is a component of the Materials Management (MM) module in SAP Purchasing. It is used to compare the actual invoice price of a material to the expected price, and to calculate the difference between them. This difference is known as the Invoice Price Variance. 
  
  How to use it: 
  The Invoice Price Variance can be used to identify discrepancies between the expected and actual prices of materials. It can also be used to track changes in prices over time, and to identify any potential savings that could be made by negotiating better prices with suppliers. 
  
  Tips & Tricks: 
  It is important to ensure that the expected price of a material is accurate, as this will affect the accuracy of the Invoice Price Variance calculation. It is also important to regularly review the Invoice Price Variance report, as this will help to identify any potential savings that could be made by negotiating better prices with suppliers. 
  
  Related Information: 
  The Invoice Price Variance component of SAP Purchasing can be used in conjunction with other components such as Purchase Requisitions and Purchase Orders. It can also be used in conjunction with other modules such as Financial Accounting (FI) and Controlling (CO).