Description
Subtract orderedUnitPrice from invoicedUnitPrice for unitVariance and multiply by nonnegative quantity for totalVariance.
Inventory charges and price differences require a common currency and unit basis. A fee fraction or unit-price variance is one component of a transaction rather than its complete landed cost.
Subtract orderedUnitPrice from invoicedUnitPrice for unitVariance and multiply by nonnegative quantity for totalVariance.
When to use this tool
Use Purchase Order Unit Price Variance when you need one procurement or stock-cost component from supplied amounts.
How to use the tool and how it works
- Enter orderedUnitPrice, invoicedUnitPrice, quantity. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read unitVariance, totalVariance. Use the output convention below.
Subtract orderedUnitPrice from invoicedUnitPrice for unitVariance and multiply by nonnegative quantity for totalVariance.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| orderedUnitPrice | Ordered Unit Price | Required. Finite number; minimum 0. |
| invoicedUnitPrice | Invoiced Unit Price | Required. Finite number; minimum 0. |
| quantity | Quantity | Required. Finite number; minimum 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| unitVariance | Unit Variance | Required. Finite number. |
| totalVariance | Total Variance | Required. Finite number. |
{
"input": {
"orderedUnitPrice": 8,
"invoicedUnitPrice": 8.5,
"quantity": 20
},
"output": {
"unitVariance": 0.5,
"totalVariance": 10
}
}Limitations and assumptions
- Use matching unit and currency bases; negative variances are allowed and no purchase-order authorization or tax reconciliation is performed.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Reconcile the result with the invoice, contract terms, taxes, and any charges outside this calculation.
References
Similar or alternative tools
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