How cost variance alerts work

A cost variance alert says that what you paid, or were billed, differs from what the order said by more than you are willing to ignore. The threshold is one number: Variance threshold (%) in Purchasing settings, default 5%.

Two checks

• Per line, from receiving. When a delivery is received against an order, each line records the cost at receipt. The order page compares the average received cost with the ordered unit cost. When the difference is more than the threshold, the Unit Cost cell turns amber and shows the percentage; hovering shows both figures.
• Per order, from invoices. For each invoice linked to the order, the invoice subtotal is compared with the order's Est. Subtotal. When the difference is more than the threshold, an amber row at the top of the order page says which invoice, both totals, and the percentage either way. Click it to open the invoice.

What it does not do

Nothing is changed automatically. The order's costs stay as ordered, the invoice stays as billed, and the alert stays until the figures agree or the link is removed. Deciding whether the vendor is right is yours.

Turning it up or down

Raise the threshold to hear only about large differences; set it to 0 to hear about every one. The change applies the next time an order page is opened.

Where you see this

The amber Unit Cost cells and the variance rows on the purchase order page; the same invoice comparison in Invoices.