Writing Off a Trailing Purchase Price Variance

If you have the Create COGS Distribution for Invoices option marked in Invoice Options, you can write off a trailing PPV on a purchase order if it is less than a certain amount or percentage. This is useful if you do not want to open a closed service call to post a PPV amount that comes in after the call is closed.

For example, if you set a write-off amount of $5, a trailing PPV amount of $5 or less on a purchase order will be written off. A historical invoice record is created for the write-off amount, which is debited from COGS and credited to WIP. If the trailing PPV is $5.01 or more, the closed service call will be opened to invoice the customer for the PPV amount. The PPV is billed to history and debited from COGS directly.

Write-off amounts and/or percentages are set up per customer or per location, to be applied at the PO header level or at the PO line level.

To have the system to split PPV entries with the same cost codes or jobs, you will need to insert the value REVALJEINDETAIL=TRUE in the dex.ini file.

Setting the Write-Off Amount

1. Select Cards > Service Management > Service Manager. On the Service Manager window, select a customer.
2. Zoom on the Customer ID or Location Address ID field, depending on whether you want to set up the write-off amount at the customer or location level. If customer and location amounts are both specified, the location record overrides the customer record. If neither record has a write-off amount, no PPV will be written off.
3. Select whether to determine write-off amounts based on the PO Header or the PO Line.
4. If you determine the write-off amount at the header level, a PPV will be written off based on the total purchase order receipt. The write-off amount is based on a single receipt, not the accumulation of multiple receipts. For example, the write-off amount is $50, and a purchase order has two receipts, each with a PPV amount of $40. Even though the combination of the two PPV amounts exceeds the write-off amount, each PPV amount is written off based on the amount per receipt.
5. If you determine the write-off amount at the line level, a PPV will be written off based on an individual receipt line. For example, the write-off amount is $50, and a purchase order has two lines, one with a PPV of $45, and the other with a PPV of $55. The $45 PPV for the first line is written off, and the $55 PPV for the second line is billed to history.
6. Enter a Write Off Amount and/or Write Off Percent. If you set both an amount and a percentage, both values must be exceeded to bill the PPV. If the PPV exceeds only one of these, for example, the write-off percentage but not the amount, the PPV will be written off.
7. Select Save to apply these rules to new purchase orders for this customer or location.