PO Quantity Variance Procedure
This procedure and attached worksheet are used to correct situations in which the operator does not receive the correct quantity for an item into the system. In this case there is a difference between the quantity received into the system against a purchase order and the quantity billed by the vendor for the same receipt for the same purchase order.
This type of error can be broken down into two types, which are handled differently.
• In the first situation, the operator incorrectly receives less than the amount actually sent by the vendor (i.e. the vendor sends 10 and the operator receives 0 or 1).
• In the second situation, the operator incorrectly receives more than the amount actually sent by the vendor (i.e. the vendor sends 10 and the operator receives 100).
In both of these cases, the first step to be completed is to confirm the amount of the item that was actually physically received from the vendor (disregarding what was done in the computer for the moment). This is normally done by performing a physical count of the item in question. The inventory activity file can also be used with the count information to confirm the amount of the goods actually received.
Once you know the amount that was actually received from the vendor, you can compare this amount to the qty received into the computer by the operator to determine the nature of the error to be fixed.
More:
Quantity received less than vendor
invoice and shipment quantity